Amazon expects $900M+ per quarter from extending server life

The cloud provider is following the server lifespans imposed by rivals Google and Microsoft last year, in a move expected to yield more than $900 million in Q1 2024.

Amazon has extended the useful life of the servers supporting its AWS cloud from five to six years, in a move that is expected to contribute almost an additional $1 billion per quarter to the vendor’s income.

The move, announced in the cloud provider’s fourth quarter 2023 results on Thursday, February 1, will further boost operating income for its AWS business, which rose from $5.2 billion in Q4 2022 to $7.2 billion in Q4 2023, and from $22.8 billion to $24.6 billion for the full year 2023.

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