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Amazon’s least sexy business now brings in $10 billion a year

Amazon Web Services, the company’s cloud computing division, generated $2.9 billion in revenue in the second quarter of 2016, up 58% from a year earlier. Tally that with the previous nine months, and AWS is officially bringing in $10 billion a year.

While quarterly revenue from AWS is still rising, its pace has slowed over the last year. AWS’s growth rate peaked in the second quarter of 2015, when the unit’s revenue increased 81.5% year-on-year, to $1.8 billion.

Amazon is still far and away the leader in infrastructure cloud computing, with a worldwide market share of 31% as of February, according to data from Synergy Research Group. In the second quarter, Amazon launched AWS in India, and signed a four-year, $400 million deal to provide cloud infrastructure to Salesforce.

But its slowing growth rate may be cause for concern. Microsoft, the number two player with 9% market share as of February, said earlier this month that revenue from its Azure cloud product jumped 108% in the latest quarter.

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