AWS and the cloud slowdown 😢

And also: Key takeaways from Shopify Q3 2022🪙, Cloud outlook ☁️, Stripe launch in Thailand 🌏

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you:

AWS Q3 Report

Key takeaways from Shopify Q3 2022

Cloud outlook

Stripe launch in Thailand

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AWS is a subsidiary of Amazon that provides on-demand cloud computing platforms. In the Amazon Q3 report, AWS recorded 27% year-over-year revenue growth and reached $20.5 billion. The y/y growth rate during Q2 and Q1 was 33% and 37%, respectively.

AWS's y/y operating income increased by 10.2% to $5.4 billion, whereas Amazon's net operating income decreased by 48.97% to $2.5 compared to $4.9 billion in Q3 2021.

AWS made some commitments with BMW Group, Schwan's Home Delivery, Pick n Pay, and others. AWS plans to expand its infrastructure in Thailand and UAE. AWS enters into an Alliance with Harvard University to do research to combat privacy and security threats.

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Shopify's total revenue increased by 22% to $1.4 billion compared to the same quarter of the previous year. S&P Capital IQ Consensus has predicted it to be $1.37 billion. The total revenue growth can be broken as follows:

  • Subscription Solutions revenue increased by 12%

  • Merchant Solutions revenue increased by 26%

Year-over-year gross profit grew by 9% to $662.3 million. There have been operating losses, however. The adjusted net loss was $30.0 million, a loss of $0.02 per basic and diluted share against the predicted $0.07.

The company seeks to simplify logistics through the Shopify fulfillment network. For that, they contracted Deliverr on July 8, 2022. Their immediate challenge will be to cut down operating losses in Q4.

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AWS and Microsoft seem to be preparing for the global recession, cutting spending and hiring in line with similar moves by customers.

Microsoft warned Azure revenue growth would slow by five percentage points in Q4. Their costs have also risen in line with global energy prices. They announced hundreds of job cuts earlier this month.

Amazon's existing hiring freeze has reached its AWS division, and it stopped hiring new employees in some sectors. But cloud business was not affected. Analysts interpreted this as a signal of AWS' importance in the company, where it is responsible for an increasingly large share of overall revenues.

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Stripe announced its availability in Thailand to help solve the complex payments issues Thai businesses face.

Thousands of companies in Thailand have already signed up on Stripe during a beta phase over the past year. Their Thai clientele includes Baania, Chanintr, Coconut Beach Bungalows, FlowAccount, Storior.

Stripe will be able to accept payments via major credit cards. It will support many local payment methods in the region, including PromptPay.

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