The Myth:
We all know Amazon as an e-commerce company just like eBay and Flipkart, but that's not the real picture for this company. This one is a unique case. Yeah, we all know that Amazon sells products online and makes our daily routine easier, so we think that Amazon uses a normal business model like the other e-commerce companies do, but that is not the case.
This company owns an industry which serves as a back-end for very popular services like Netflix, Twitch, LinkedIn, Facebook, BBC, Adobe, Twitter etc.
Many people don't know about this industry as it is like a hidden pipe of their homes which works at back-end for their water supply. By now you might be thinking that why is Amazon's this industry serves as a back-end for Netflix (streaming giant), which is amazon prime video's (Amazon's streaming service) biggest competitor. Let's see what this industry really is, but to understand it better let's see what is cloud computing first.
What is Cloud Computing?
Cloud Computing is basically a delivery of on-demand computing services typically over the internet on a pay-as-you-go basis.
Most of the companies do not own their own computing infrastructure or data centres, companies can rent access to anything from application to storage from a cloud service provider.
The benefit of using cloud computing services is that, one can avoid the upfront cost and complexity of owning and maintaining their own IT infastructure, and instead simply pay for what they use and when they use it.
Cloud computing is used for many services today, ranging from the basics of storage and networking to natural language processing and artificial intelligence as well as standard office applications. Today, you can avail any service that does not require you to be physically close to the computer hardware that you are using on the cloud.
Some popular examples are: Gmail, Google Drive, Mega Cloud, Netflix, Youtube, amazon prime video etc.
Amazon Web Services (The Industry):
Amazon Web Services (AWS) is a leading Cloud Computing service provider to many of the popular companies.
There are lot's of stories regarding the formation of Amazon Web Services (AWS), 14 years ago, Amazon Web Services, the cloud infrastructure as a Service arm of Amazon.com, was launched as side business for Amazon.com. Today it's a highly successful company making around $10 billion run rate.
Amazon Web Services (AWS) has grown into the most successful cloud infrastructure company on the planet, that owns 40% of the market.
Here is the list of some popular companies using AWS at the back-end and their Monthly spend:
| S.no. | Company: | Monthly Spend: |
| 1. | Netflix | $19 million |
| 2. | $11 million | |
| 3. | $7 million | |
| 4. | Twitch | $15 million |
| 5. | $13 million | |
| 6. | Adobe | $8 million |
| 7. | BBC | $9 million |
Data Provided by Intricately
The main reason why AWS is important is that it provides services not only to these popular companies but also to so many other companies present on the internet using their service.
When AWS starts to fail, like it did in March, 2018, It seems that the internet is collapsing. If you don't know which services are running on AWS you won't be able to figure out whether it is a Cloud failure or Submarine cable break. Due to this invisible infrastructure most of us are unaware of which company uses which Cloud service. It is the reason why we are unaware of Amazon Web Services and other Cloud service Providers also.
Amazon Web Services (AWS) is King of all the other Cloud Services out there.
Source: Massive scale cloud structure research, 2016
Thank you for reading,
Hope you learned something new.
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