Amazon makes a lot more money with selling web services than they do with selling books and other goods..
Forbes.com wrote recently: “A few months ago Amazon reached what its founder and CEO Jeff Bezos demurely tells me was “an interesting milestone.” The retailing giant, so ubiquitously associated with books, then music and video, now has tens of millions of products in stock -and a majority are non-media goods: drills, dress shoes, tennis rackets and almost anything else that a human can ship. During the last ten years however their largest revenue comes from web services.
What about AWS = Amazon Web Services and their Cloud Business? Amazon Web Services (AWS) are always two steps ahead of the competition, even as countless new clouds come online to compete. How can they do it?
- Innovation comes from small teams that work directly with customers.
- It is easy to prioritize new projects when the engineers really know the customer.
- Amazon works to lower costs for customers, not just lower costs for itself. "We’ve reduced prices 19 times over the past 6 years, and this an area we will continue to focus," Werner Vogels, Amazon's CTO says.