Amazon Web Services (AWS) Australia has made a decisive return to profitability after making $534 million in revenue during 2019.
The world's largest cloud provider posted $8.6 million in profit after tax in Australia for the year ended 31 December 2019, a significant leap from its $15.7 million loss in the year prior.
During the 12-month period, AWS grew its revenue by 74 per cent, from $306 million to just over half a billion.
According to the report filed with the Australian Securities and Investments Commission (ASIC), AWS managing director for Australia and New Zealand Paul Migliorini stepped down from its board as of February 2020, having taken on an Asia Pacific and Japan role.
He was replaced by former director of enterprise Adam Beavis, who is now the company's managing director for Australia and New Zealand for commercial sales. Beavis also replaced Migliorini on the board.
Meanwhile, AWS Australia's wages to staff rose by 53 per cent to $135.4 million to more than $200 million, while benefits also climbed by $23 million.
AWS paid $31.5 million in income tax last year, a 200 per cent increase year-on-year, but also benefited from a deferred income tax asset valued at $131.9 million.
Last year, AWS made $25 billion in revenue globally for the nine-month period ended September 30, 2019 and still accounts for the majority share in the infrastructure-as-a-service market, at 40 per cent.
However, recent data suggest Microsoft, Google Cloud and Alibaba Cloud have all been “steadily gaining” presence during the past three years.
The company recently outlined three areas of opportunity for partners to capitalise on this year. These included around cloud migration and modernisation, demand for contact centre technology and data analytics management and artificial intelligence.
Last year, Migliorini spoke to ARN about AWS’ loss for 2018, saying the company had lowered its prices 72 times in the last 14 years, or in other words, never raised its cloud services prices.