AWS on track to be bigger than IBM by Christmas, once Kyndryl is spun out

Amazon.com recorded $108.5bn in sales for the first quarter of its 2021 financial year, $13.5bn of which came from its Amazon Web Services (AWS) operation. AWS generated $10.2bn of revenue in Q1 2020, so we're looking at a 32 per cent year-on-year revenue jump. On the company’s earnings call on Thursday, Amazon CFO Brian …

[MrMerrymaker]

Bigger than IBM

A backhanded compliment if I ever heard one!

[Anonymous Coward]

Accounts

What percentage of that is down to "creative accounting" in each of the countries they operate in?

[IGotOut]

IBM have heard the news...

.. And to fight this threat they will lay off another 5000 staff.

[Anonymous Coward]

AWS generated $10.2bn of revenue...

So you can organize the accounting at the end of the year by having AWS invoice each Amazon country location an amount to "zero" the local profits and eliminate local taxes. I don't know that this is happening but it's a typical tax avoidance mechanism that I've seen in the international corporate world for years.

[John Riddoch]

Re: AWS generated $10.2bn of revenue...

The defenders of this practice will say that the cheque from AWS UK to AWS America (although in reality, it's more likely something in Bahamas or another low tax country) is to cover the intellectual property/rights/stuff that the mothership does to make the product it sells in the UK worth buying.

[katrinab]

Re: AWS generated $10.2bn of revenue...

Isn't most of the intellectual property created in India these days? And India isn't the first country that springs to mind when looking for an example of a low-tax economy.

[RolandM]

And for Lucky Employees it's the 'Empty Bottle Song'

... that of course will be filled during the journey.

[J27]

I keep forgetting IBM still exists, they're not exactly a growth stock. More like a legacy provider that exists by milking all they can get out of a shrinking customer base.

[teknopaul]

"Amazon has fitted AI-driven driver safety kit on its delivery vehicles"

Doesn't stop them parking on zebra crossings at busy junctions stopping the buses passing by.

Amazon delivery is a disgrace where I live.

[Snowy]

Not likely

I would be surprised if they manage to grow revenue by 32% in 2021, the increase over the last few years has slow down from 47 in 2018, to 37 in 2019 and now down to 32% in 2020.