Amazon is an amazing business success story and a money-making machine.At the company’s Q2 earnings announcement this year Amazon reported sales of $52.9 billion for the three months ending 30 June 2018. This was an increase of almost 50% on the $35.71 billion reported in Q2 2017.
Net profit showed even more impressive growth, with a more than 10x increase from $197 million in Q2 2017 to $2.5 billion in Q2 2018.
Amazon profits are in the clouds
Amazon began life in 1994 as the online book store. Through the 2000s the company became an online retailer of everything from books to vehicles and all products in between.
Its e-commerce platform has now extended to allowing retailers promote their goods through ads. Of course, this model has worked exceptionally well for other online platforms such as Google and Facebook.
In the recent years, Amazon has drawn its revenue from three main sources.
- Amazon Prime
- Amazon Web Services (AWS)
Surprisingly, the AWS is now the biggest contributor to the company’s profits.
Amazon investing further in Ireland
Just prior to their earnings report Amazon opened a new office building just outside Dublin’s city centre.
Their new premises is a 170,000 square foot building on Burlington Road in the highly sought-after suburb of Dublin 4. The e-commerce giant also announced further expansion with the creation of two more locations – one in Blanchardstown, North Dublin and the other in Tallaght, South Dublin.
The two new locations will house 1,000 highly skilled new roles including a host of engineering positions and a range of technical management positions for both Amazon and AWS. The new jobs announcement doubles the growth target that Amazon committed to in 2016.
Mike Beary, AWS Ireland country manager, commenting on the news said
“There is an abundance of talent in Ireland which helped us to exceed our talent growth targets ahead of schedule. Ireland is a great place to do business, the country’s creative culture and diverse pool of technical skills make it an ideal location for our rapidly expanding business.”
Amazon expansion in Ireland is positive on two fronts:
Firstly, they chose Ireland to expand over other locations.
Amazon’s hiring spree seemed to level off in 2017. After years of adding to their workforce, the acquisition of Wholefoods in 2016 resulted in a momentary pause in hiring. Despite all of this, Ireland was still the chosen location for 1,000 new jobs.
Secondly, they chose Ireland for its market leading business.
In November 2007, AWS opened its first EU regional office in Ireland. Since then AWS has grown the number of staff and the diversity of their roles. There are currently more than 2,500 Amazon employees across Ireland and more than 1,000 engaged in data centre operations.
Amazon is not an outlier in global tech companies that have selected Ireland as a key location in their global expansion strategy. At present Ireland currently boasts the presence of:
- 8 of the top 10 global software companies
- 15 of the top 15 US technology companies
- Top 3 global enterprise software companies
- 4 of the top 5 I.T. services companies
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