Why Amazon Web Services (AWS)?
April 16, 2008 – 10:01 pmI am sure we have all wondered why Amazon is in the utility computing business. Kindle, I can understand. AWS, I am not so sure. After all, Amazon is a retailer. An Internet pioneer but it is still in retail business. Retail business in general are very low margins business. So why then would Amazon make heavy investment into these Amazon Web Services? The general explanation given by some gurus, Amazon computing power is built to handle the Christmas season load and more. Rest of the year, the systems utilization is really really low. And thus AWS is lets them monetize that infrastructure. That makes sense to an extent. Does it mean, during the heavy infrastructure usage Christmas season, AWS users will see slower response time? So, again I started with some of their financials to see if they do a better job at detailing this than Google does. I was pleasantly surprised. ...