Amazon to put cloud on the balance sheet

Amazon will report on AWS in its financials from Q1 2015, as it continues to invest heavily in the cloud service

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Amazon will report on AWS in its financials from Q1 2015, as it continues to invest heavily in the cloud service.

The company reported profit of $214m in the fourth quarter last year, compared to $239m for the fourth quarter of 2013.

Sales increased 15% to $29.33bn, compared to $25.59bn in teh same period last year.

In a transcript on the Seeking Alpha financial site, CFO Tom Szkutak confirmed the company’s commitment to growing shareholder value in the AWS business.

He said the company would include AWS revenue its financial reporting from the first quasrter of 2015. He said: "We remain heads down focused on driving a better customer experience through price, selection and convenience. We believe putting customers first is the only reliable way to create lasting value for our shareholders."

When asked how Amazon would continue to boost its cloud services, Szkutak said: "We are expanding very rapidly. We have been hiring a lot of great people over the past few years. We do think it's a big opportunity. We are making sure we keep the hiring bar really high to make sure we bring in great resources like we do across all of Amazon and we are super excited about the opportunity. So we are investing very heavily."

Earlier this week Amazon launched WorkMail and Workspaces, in a bid to boost ecollaboration on AWS. Janakiram MSV, a senior analyst for GigaOm Research, believes the products will fundamentally change the AWS partner ecosystem. In a blog post for Gigamon, he noted: "After development and test, email is the most common workload to move to the cloud. With WorkMail, the opportunity window for migration and managed services diminishes significantly."

Earlier this week, Amazon said it would be stopping its mobile wallet beta only six months after it launched the app which enabled users to store and manage gift, store and loyalty cards.

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I think alot of people have been surprised as the profitability of AWS. They expected it to be very low margin, just like the retail side of Amazon.com. At this point, AWS is driving Amazon. 
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