AUSTIN, Texas, Nov. 20, 2025 (GLOBE NEWSWIRE) -- SoftServe, a premier IT consulting and digital services provider, today announced the formation of a dedicated, partner-specific Business Unit (BU) for Amazon Web Services (AWS). Building upon its Strategic Collaboration Agreement (SCA), SoftServe’s dedicated AWS BU is designed to help enterprises overcome one of the biggest challenges in cloud adoption: moving beyond migration to achieve complete infrastructure and application modernization. Many organizatio ...

Core Insights - Amazon is gaining momentum and is likely to join the $3 trillion market cap club with only a 12% gain needed next year [2] Group 1: AWS Performance - Amazon Web Services (AWS) has shown a 20% year-over-year increase in sales for Q3 2025, indicating a recovery and growth in its cloud services [4] - AWS controls approximately 30% of the global cloud services market, maintaining a significant lead over competitors [4] - The sales growth acceleration is notable given the wider base, suggesting that clients perceive AWS as offering more value than its rivals [4] Group 2: AI Developments - AWS is central to Amazon's AI initiatives, providing a platform for clients to develop various AI applications [5] - Recent AI updates include SageMaker for custom large-language models, Bedrock for utilizing other LLMs, and new tools like AgentCore and Kiro [6][7] - The AI business is projected to have a run rate of $132 billion, contributing significantly to Amazon's overall revenue [8] Group 3: E-commerce Enhancements - E-commerce remains a core revenue driver for Amazon, generating $110 billion in revenue in Q3, accounting for nearly two-thirds of total revenue [10] - Amazon is enhancing its product selection and delivery speed, with a 14% increase in available products year-over-year [11] - The company has expanded same-day grocery delivery to 1,000 locations, with plans to reach 2,300 by year-end, improving customer loyalty and satisfaction [12]

Financial Data and Key Metrics Changes - The company reported revenue of $180.2 billion for Q3 2025, representing a 12% year-over-year increase, excluding foreign exchange impacts [5][22] - Operating income was $17.4 billion, which would have exceeded $21 billion without two special expenses totaling $4.3 billion [5][23] - Trailing 12-month free cash flow stood at $14.8 billion [5] Business Line Data and Key Metrics Changes - AWS revenue grew by 20.2% year-over-year, marking the largest growth rate in 11 quarters, with an annualized revenue run rate of $132 billion [5][29] - North America segment revenue reached $106.3 billion, an 11% increase year-over-year, while the International segment revenue was $40.9 billion, up 10% year-over-year [23] - Advertising revenue was $17.6 billion, growing 22% year-over-year [18][28] Market Data and Key Metrics Changes - The backlog for AWS grew to $200 billion by the end of Q3, not including several unannounced deals in October [6] - Worldwide paid units increased by 11% year-over-year, indicating strong customer engagement [24] Company Strategy and Development Direction - The company is focused on expanding its AWS capabilities, particularly in AI and core services, and plans to double its overall capacity by the end of 2027 [33][14] - The company is committed to enhancing its grocery business through innovations like same-day delivery for perishables, which has significantly increased customer engagement [15][45] - The company is investing over $4 billion to expand its rural delivery network, aiming to improve service in underserved areas [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of AWS and the demand for AI services, highlighting the importance of Trainium chips for future scalability [5][35] - The company anticipates continued strong performance in the advertising sector, driven by its full-funnel advertising approach [58] - Management emphasized the need for a lean organizational structure to maintain agility and innovation in a rapidly changing market [46] Other Important Information - The company has made significant investments in robotics and automation, with over a million robots in its fulfillment network, aimed at improving efficiency and safety [48] - The company is exploring agentic commerce, which could enhance the online shopping experience through AI-driven solutions [50][52] Q&A Session Summary Question: AWS capacity levels and Trainium demand - Management indicated that AWS has added significant capacity, with 3.8 gigawatts in the last year and expects to double capacity by 2027, with strong demand for Trainium chips [33][35] Question: Trainium positioning versus third-party chips - Management acknowledged the importance of multiple chip options and highlighted the strong performance of Trainium, which is 30-40% more price-efficient than competitors [37][38] Question: Grocery business and same-day delivery - Management reported over $100 billion in gross merchandising sales in the grocery sector and emphasized the success of same-day delivery for perishables [42][45] Question: Future headcount and AI efficiencies - Management clarified that recent headcount changes were not primarily driven by financial or AI considerations but aimed at improving organizational efficiency and decision-making [46] Question: Robotics and automation investment - Management confirmed ongoing investments in robotics to enhance productivity and safety within fulfillment operations [48] Question: Agentic commerce and customer experience - Management expressed excitement about the potential of agentic commerce to improve online shopping experiences and indicated ongoing efforts to enhance customer interactions [50][52]