Posted On: Mar 4, 2011

Article Excerpt: "AWS makes it possible for anyone with an Internet connection and a credit card to access the same kind of world-class computing systems that Amazon uses to run its $34 billion-a-year retail operation. "This will be a very high-volume, relatively low-margin business," Jassy says.”

“AWS is growing like crazy. Although he won't cite exact numbers, Jassy claims "hundreds of thousands of customers" already use the service, and analysts at UBS (UBS) estimate Amazon will do about $750 million of business on AWS this year. In fact, a whole generation of Internet companies couldn't exist without it. Netflix's (NFLX) movie-streaming empire runs on it; Zynga, the social gaming company, uses it to handle sudden spikes in usage. AWS has become such a fact of life for Silicon Valley startups that venture capitalists actually hand out Amazon gift cards to entrepreneurs. Keeping up with the demand requires frantic expansion: Each day, Jassy's operation adds enough computing muscle to power one whole Amazon.com circa 2000, when it was a $2.8 billion business.”

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