What is AWS and Why it is So Successful?

(Last Updated On: November 23, 2022)

Amazon Web Services, Amazon.com Inc’s (AMZN) is a cloud platform and has become a large part of the e-commerce giant’s business portfolio. In 2nd quarter of 2021, AWS reported net sales of $14.8 billion.

Which represents just over 13% of Amazon’s total net sales. With a steady growth of around 30% in recent quarters, AWS is a pioneer compared to other cloud computing platforms such as competitor Microsoft Azure.

What Exactly AWS is?

AWS consists of various cloud computing products and services. The Profit line of Amazon’s business offers servers, storage, networking, remote computing, email, mobile development, and security.

AWS is divided into 3 mains of its products i.e. The amazon VMS, Glacier, a low-cost cloud storage service, and S3, EC2, Amazon’s storage system.

AWS is so big and present in the computing world that it has far surpassed its competitors. Starting four-month of 2021, an independent analyst reported that AWS had more than a third of the market at 32.4%, with Azure at 20% and Google Cloud at 9% behind.

81 AWS zones are available in which its servers are located. These served regions are divided to allow users to set geographic boundaries for their services (if they wish), but also to ensure security by diversifying the physical locations where data is stored. In total, AWS covers 245 countries and territories

Cost Saving

Jeff Bezos compared Amazon Web Services to utilities in the early 20th century. A hundred years ago, a factory that needed electricity built its own plant, but after factories were able to buy electricity from a utility company, the need for expensive private power plants diminished.

AWS is trying to convert companies from physical computing technology to the cloud.

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The companies are mainly focusing on large amounts of storage that had to physically build and maintain storage space. Storing the data in a cloud can mean signing an expensive contract for a large amount of storage space that the business can “scale”.

Building or buying too little storage can be disastrous when business grows and expensive when it doesn’t. The same goes for computing power. Businesses with increased traffic traditionally buy a lot of energy to keep their business going during peak hours. During off-peak times – for example in May for tax advisers – computing power goes unused, but it still costs the business money.

With AWS, businesses pay for what they use. There is no upfront cost for setting up a storage system and it is not necessary to estimate usage. The customers of AWS use what they need and the costs are adjusted automatically.

Also, Visit AWS Training in Delhi

Scalable and Adaptable

The AWS cost changes on the basis of customer usage, start-ups, and small businesses can see the clear benefits of using Amazon for their IT needs.

For building a business from scratch AWS is great because it has All the tools companies need to get started with the cloud. businesses that are already existing, Amazon offers affordable migration services so that their existing infrastructure can be seamlessly transferred to AWS.

As a business grows, AWS provides resources to help it grow. Because the business model allows for flexible usage, customers never have to think twice about whether or not to rethink their IT usage. For the reasons of budgetary, organizations could realistically “stop and forget” all of their IT needs.

Security and Reliability

Amazon Web Services is much more secure than any other company hosting its own website or store. Currently, AWS has dozens of data centers around the world that are constantly monitored and maintained.

The diversification of data centers will ensure that the disaster that strikes the region does not cause permanent data loss worldwide. Imagine that on the eve of the hurricane, Netflix had all its personnel files, content, and backed-up data centrally on site. Follow the chaos.

In fact, it doesn’t make sense to place information in an easily identifiable place that hundreds of people can realistically access. AWS always tries to keep its data centers as hidden as possible, keep them in remote locations, and allow access only to the essentials.

Reviews of AWS

The reasons behind the success of AWS are undeniable, critics of the service say Amazon is abusing its market share by controlling the competition.

This criticism comes from open-source database vendors who claim that Amazon copies and integrates software originally developed by other technology companies.

One of those companies, Elastic, sued Amazon for an alleged violation of trademark laws. A statement published by the company states that “Amazon’s behavior contradicts norms and values that are particularly important in the open-source ecosystem.” The results of this action are pending in August 2021.

The Bottom Line

Amazon Web Services is a source of income for Amazon. Services are shaking up the IT world the same way Amazon is changing the U.S. retail space. Extremely affordable pricing for its cloud products allows Amazon to offer affordable and scalable services to everyone from a young start-up to a Fortune 500 company.