Introduction
In this blog, we will learn what is AWS and why it is so profitable and effective for Amazon. The cloud computing platform utilised by Amazon Inc. (AMZN), known as Amazon Web Services (AWS), has grown significantly in importance to the online retailer’s service offering. AWS produced a record $10 billion in revenue in the first quarter of 2020, accounting for 13.5% of Amazon’s overall earnings. AWS has been expanding continuously in the range of 30% over the previous few quarters, outpacing rival Microsoft Azure and other cloud computing platforms.
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What Exactly Is AWS?
There are numerous different cloud computing products and services that make up AWS. Servers, storage, networking, remote computing, email, mobile application development, and security are all services offered by the lucrative Amazon division. AWS can be divided into three primary categories: S3, Amazon’s storage system; EC2, Amazon’s virtual machine service; and Glacier, a cost-effective cloud storage service. AWS has far outpaced its competitors due to its size and presence in the computing industry.
The 76 availability zones that AWS uses to house its web servers. These serviced areas are divided not only to ensure security by spreading out the physical places in which data is housed, but also to allow users to establish geographic restrictions on their solutions (if they are that picky). AWS generally covers 245 nations and territories.
Cost reduction
Amazon.com Internet Solutions has been compared by Jeff Bezos to the utility firms from the very early 1900s. A industry in need of electricity would have built its own power plant a century ago, but as soon as the manufacturers could obtain electricity from a utility, the necessity for pricey private electric plants declined. AWS is attempting to move businesses away from traditional computing infrastructure and onto the cloud.
The same holds true for computer power. Businesses with high traffic volumes frequently purchase a lot of power to run their operations during peak hours. Calculating power costs more at off-peak seasons, such as May for tax accounting experts, but will still set you back a significant sum of money.
Companies pay for what they consume using AWS. The cost of creating a storage system is not known in advance, nor is it necessary to predict usage. Customers of AWS only utilise what they require, and their charges grow automatically and appropriately.
Flexible and Scalable
Startups and small businesses can benefit significantly from using Amazon for their computing needs because AWS costs are tailored to the needs of the clients. AWS actually provides all the tools required for a business to launch using the cloud, making it fantastic for starting one from scratch. For an existing company, Amazon offers reasonably priced migration services to make sure that your current facilities can be easily transferred to AWS.
It offers tools to support growth as a firm grows, and because the business model allows for flexible consumption, clients won’t ever have to waste time debating whether or not they should assess their computing usage. In actuality, aside from monetary considerations, businesses may actually “create and fail to recall” all of their computing requirements.
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Safety and Reliability
A business hosting its own website or storage might be argued to be much less secure than using Amazon Web Services. AWS presently operates numerous data centers all around the world that are well maintained and continually monitored. A disaster affecting one location won’t result in long-term data loss worldwide thanks to the data centres’ diversity. On the eve of a typhoon, picture Netflix having all of its employees’ records, web content, and backup data concentrated on-site. Unrest would undoubtedly result.
Conclusion
So far, we have described what is AWS and why it is so profitable and effective for Amazon. Amazon’s cash cow is Amazon Web Services. Similar to how Amazon is changing the retail industry in America, these services are shaking up the computing industry. Amazon can offer economical and scalable solutions to everyone, from the newest startup to a Fortune 500 company, by pricing its cloud products relatively cheaply.
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