Name: Insights: How Amazon Took Over the Cloud
Uploaded: 2020-03-12
Duration: 2 min 52 s
Description: Amazon quietly got a head start on other cloud companies.

[MUSIC PLAYING] LEENA RAO: Amazon is a company that's really known for its retail marketplace, but quietly over the past nine years, it's actually built a pretty vibrant business around selling cloud, services, and infrastructure to companies. So a few weeks ago, Amazon released the financials behind Amazon Web Services, its cloud computing business. And it's on track to make $6 billion this year, and all signs point to AWS, Amazon Web Services, as being one of Amazon's strongest businesses. Amazon Web Services started out nine years ago. It initially just launched with one specific product that allowed companies to basically store any files that were uploaded to their website in the cloud. Flash forward nine years, it's not just startups using AWS, it's companies like Netflix, it's big huge enterprises. What's driving the growth right now is that more and more companies are putting their infrastructure, their computing. They are basically allowing their websites and their web products to be powered by the cloud. Because of that trend, more and more enterprises, more and more big companies, including Time Inc. now use AWS as the place that powers their web infrastructure. Amazon Web Services had about a seven-year head start when it came to offering these types of services. But Microsoft and Google have caught on, IBM has caught on, and they all are competing with Amazon Web Services and with each other to create and get a slice of this massive cloud market, which many people call it a trillion-dollar opportunity. Amazon has cut its prices of its services 48 times in the past six years. Amazon is sending a clear signal to its competition. It doesn't care about cutting its prices. Jeff Bezos is known actually for not caring about profits. He cares about sales. He cares about long-term vision. But AWS, Amazon Web Services, is actually making between $100 and $200 million in profit. There are a few challenges that lie ahead for Amazon. First is that Microsoft is growing pretty fast, and part of the reason that Microsoft's going fast is because it's had a legacy of being an enterprise business. Another thing that Amazon should be worried about is investor pressure to potentially spin off. There's been a lot of talk on Wall Street about AWS becoming its own business. And that being said, Jeff Bezos is the founder of the company, and it's highly unlikely that that would ever happen unless he gave his blessing. [CHIME] 

Insights: How Amazon Took Over the Cloud

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Amazon quietly got a head start on other cloud companies. 

How Amazon Took Over the Cloud

Amazon is the company that really known for its retail marketplace, but quietly over the past nine years, it's actually built a pretty vibrant business around. Selling Cloud Service is on infrastructure to cos A few weeks ago, Amazon released the financials behind EMS on Web service is cloud computing business, and it's on track to make $6 billion this year and all science 60.28 of US Amazon Web services as being one of Amazon strongest businesses. Amazon Web services started out nine years ago. It initially just launched with one specific product that allowed companies to basically store any files that were uploaded to their Web site in the Cloud Flash board. Nine years. It's not just started using eight of us, it's companies like Netflix, it big, huge enterprises. What's driving the growth right now is that more and more companies are putting their infrastructure there. Computing there are basically allowing their websites in their Web product to be powered by the clouds. Because of that trend, more and more enterprises more and more big companies, including timing, now use eight of us as the place that powers their Web infrastructure and Web service had about a seven year head start when it came. Offering these types of service is, but Microsoft and Google have caught on. IBM cut on, and they all are competing with Amazon Web services and with each other to create and get a slice of this massive cloud market, which many people call it a trillion dollar opportunity Amazon has cut its price of a service is 48 times in the past six years. Amazon is sending a clear signal to its competition. It doesn't care about cutting his prices. Just known, actually, for not caring about profits. He cares about Sales cares about long term vision. But eight of us Amazon Web service is is actually making between 102 100 million in profit. They're few challenges that lie ahead for Amazon. First is that Microsoft is growing pretty fast and part of the reason that Microsoft going fast because it had a legacy of being an enterprise business. Another thing that Amazon should be worry about, investor pressure to potentially skin off. There's been a lot of talk on Wall Street about eight of us becoming its own business, and that being, said Jeff Bay, those is the founder of the company, and it's highly unlikely that that would ever happen unless he gave me