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Amazon Web Services made an accounting change to how it deals with servers that will add $2.3 billion in profits this year — and it speaks to its growing cloud efficiency (AMZN)

Jeff Bezos, Amazon founder and CEO, speaks at The Economic Club of Washington's Milestone Celebration in Washington, Thursday, Sept. 13, 2018. Bezos said that he is giving $2 billion to start the Bezos Day One Fund which will open preschools in low-income neighborhoods and give money to nonprofits that helps homeless families.

  • Amazon now expects the servers running its massively profitable and market-dominating Amazon Web Services cloud computing unit to last longer.
  • That means Amazon gets to spread the depreciation cost of the servers over a longer period of time, recording smaller expenses each year — and bigger profits.
  • Analysts say the longer server durability is also a testament to AWS’s technological prowess, as it’s become more efficient with its data centers.
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A change in how Amazon accounts for the life expectancy of servers powering its Amazon Web Services cloud business could boost the company’s profits by $2.3 read more >>>

Source:: BusinessInsider.Com