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AWS says growth dropped to mid-teens to start new year as customer cost cutting continues


Yesterday Amazon reported earnings with AWS growing a modest 20% for for the quarter over the prior year to $21 billion. But perhaps even more troubling, the company reported in the earnings call with analysts that growth dropped even further into the mid-teens for the first month of the new year, as the cloud continued a general slowdown with customers looking for ways to slash bills.
“As we look ahead, we expect these optimization efforts will continue to be a headwind to AWS growth in at least the next couple of quarters. So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens,” CFO Brian Olsavsky said in his comments to open the call.
For a division that has enjoyed high growth rates for years, mid-teens growth represents an extraordinary drop, a …

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