Amazon Web Services

AMAZON WEB SERVICES CASE ANALYSIS SNEHA KATKURI viragos core employment of selling goods (ranging from books to fresh food and electronics to bearing cloths) through its e-commerce portal has seen exponential growth which necessitated a need for a massive retention and computing al-Qaida that is always available and is disgustful to failures. After building this, it is intuitive for virago to open up the infrastructure and sell it as a commodity.This stand bys amazon not only to tempt more customers to this vernal mathematical product but also to build clean infrastructure thus benefiting its core business. The unmatched economies of scale at Amazon offer huge cost effciencies through a combination of high-volume, pitiful cost procurement thanks to bargaining power of buyer Amazon. In addition, constant technological innovations in design, operations and management of the data centers help Amazon reduce the prices of its AWS offerings. Because of cheaper service provision , there is a flood of new customers for AWS.However, with the advent of new competitors like Google overcloud Engine, there is an increasing dialect on Amazon pricing. But, given that any typical business involve both scalable computing and storage, AWS, which offers a complete basket of fly the coop is a preferred choice for customers. Furthermore, the investments on AWS improved Amazons core business by helping it introduce value-added services. In 2007, Amazon introduced cloud- based music service to sell MP3 songs and a web- music player.Even though other competitors like Google announced a similar service, the music gist available on Amazon was significantly cheaper and attracted more customers. Amazon Cloud Drive introduced almost simultaneously, runs on AWS (S3) service. The Kindle device sold by Amazon has a huge competitive advantage over box in the market thanks to up to 5GB of cloud- based free storage for storing books and personal documents. This also reduced the manu accompanimenturing cost of the device by getting rid of microSD card slot.Amazon AppStore, that runs on AWS, built to sell Android apps is a popular value added service to the recently introduced Kindle Fire device. Often, the prices of these apps argon way lesser than those of competitors like Google. Instant Video is another massively popular service which helped Amazon build a huge eco organization of content like music, books, apps and video that is vital for the success of a oral contraceptive pill device in the current ever- changing market extremely displace with numerous devices from various manufacturers.Amazon has an advantage over competitors in this market because they were the start to market and so have had more experience and season 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 signalize of being able to offer guarantee to the u sers. Also, because designing and building much(prenominal) 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, strengthen 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 Amazons existing infrastructure unlike some competitors alternatives which had to be built from scratch, in turn giving a huge top off time to Amazon in cloud computing.Moreover, huge costs problematic prohibit existing clients of AWS to switch to a new, yet cheaper, alternative. Furthermore, Amazon has learnt the imperatives and modalities of implementing and maintaining a network out of their business need and so as a consequence has better insight of flexibility some rea l valet de chambre situations need. Thus I think though Amazon is giving up its competitive advantage of software competency by offering AWS services, it is in turn proving to be profitable to the Company in the long run.