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Amazon Web Services Essay

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AMAZON WEB SERVICES CASE ANALYSIS SNEHA KATKURI Amazon’s core business of selling goods (ranging from books to fresh food and electronics to fashion cloths) through its e-commerce portal has seen exponential growth which necessitated a need for a massive storage and computing infrastructure that is always available and is resistant to failures. After building this, it is intuitive for Amazon to open up the infrastructure and sell it as a commodity. This helps Amazon not only to attract more customers to this new product but also to build new infrastructure thus benefiting its core business. The unmatched economies of scale at Amazon offer huge cost effciencies through a combination of high-volume, low cost…show more content…
Often, the prices of these apps are way lesser than those of competitors like Google. Instant Video is another massively popular service which helped Amazon build a huge eco system of content like music, books, apps and video that is vital for the success of a tablet device in the current ever- changing market extremely crowded with numerous devices from various manufacturers. Amazon has an advantage over competitors in this market because they were the first to market and so have had more experience and time to work out the kinks. Their 99% uptime guarantee for the S3 service is a testament to the fact that they have experienced issues in the past and have learned from them to the point of being able to offer guarantee to the users. Also, because designing and building such huge cloud infrastructures requires vast amount of resources, competitors need precious time to catch up. In addition, Amazon itself is a very big customer for AWS. Hence, strengthening AWS is a natural choice for Amazon which is in its own business interest. For other players in the market, for example, RackSpace, a huge uncertainty exists in planning new initiatives and introducing new services on its cloud products. Also, AWS is a product evolved from Amazon’s existing infrastructure unlike some competitors’ alternatives which had to be built from scratch, in turn giving a huge lead time to Amazon
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