CIA’s Amazon.com, Inc. (AMZN) Cloud Is Ready To Roll


Work is almost complete on the Central Intelligence Agency’s cloud platform based on Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Web Services (AWS). Development of the special cloud platform for the CIA has been ongoing for about 18 months. Amazon trounced International Business Machines Corp (NYSE:IBM) to win the CIA contract.

According to Doug Wolfe, the chief technology officer for the CIA, the AWS-based cloud for the agency is almost done. He said that the project has already reached final operational capability. Wolfe further disclosed that they will roll out their new cloud to 17 different agencies once everything is done.

To tap government contracts, Amazon.com, Inc. (NASDAQ:AMZN), in 2011, created a special cloud region to meet the special demands of government agencies.

Hotly contested contract

Amazon.com, Inc. (NASDAQ:AMZN) beat IBM to win the hotly contested $600 million CIA cloud contract back in 2012. IBM lost the bid despite making an offer that was substantially lower than Amazon’s. The company contested Amazon’s win, hoping to reopen the bidding process as it claimed to be better suited than Amazon to meet the CIA’s cloud needs. However, the matter moved to court where Amazon carried the day.

AWS boasts a million active users

Amazon.com, Inc. (NASDAQ:AMZN) recently revealed that its cloud service, AWS, now has more than 1 million active users. The company does not update on the revenue in the segment but will soon start reporting it. However, Amazon continues to face steep competition in the cloud segment from Google Inc (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and other cloud providers.

Financial performance

Amazon.com, Inc. (NASDAQ:AMZN) generated total revenue of $29.33 billion in the fourth quarter 2014, up 15% year-over-year. Net income for the quarter was $214 million, representing $0.45 a share, down from $0.51 a share a year earlier. The company generated revenue of $88.99 billion for the full-year 2014, which was 20% better than the previous year. Amazon finished the year with a net loss of $241 million or $0.52 a share.

If AWS is doing well, its success should help Amazon.com, Inc. (NASDAQ:AMZN) to generate more revenue in the future.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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