About
Amazon - not only eCommerce
Amazon's business activities are not just about eCommerce. The subsidiary Amazon Web Services offers cloud computing - and is the international market leader in this field.
The IT company Amazon Web Services was founded in 2006 and has developed into an important revenue and earnings generator in the Amazon Group. From the beginning, the offer was aimed at professional customers. Amazon Web Service provided them with a practical platform or IT infrastructure.
Maximum flexibility and excellent quality - the Amazon Cloud
Amazon discovered and filled a gap in the market early on with its web computing. Its Elastic Compute Cloud is characterized by short-term availability and high reliability. Customers can use the servers both via Microsoft Windows Server and with the help of Linux distribution. They store large amounts of data on the Amazon Cloud or use the service for applications. Unlike other cloud providers, Amazon Web Services does not have fixed contract periods.
The cloud services used are billed in the smallest possible units: Users can bill for cloud usage by the hour or even by the second. This is a major advantage for start-ups and other IT pioneers, who usually have little money for investments in the initial phase. Of course, customers can also take out subscriptions for services at Amazon Web Services that can be cancelled at any time at particularly favorable prices.
In the meantime, many global corporations are among the users of this service, such as the Kempinski hotel chain or the insurance specialist Talanx. Numerous German DAX-listed companies are also among Amazon Web Services' customers.
In addition, Amazon Web Services scores with the fact that all content on the respective working memory is completely deleted as soon as the user stops the corresponding instance. Thus, applications on Amazon's cloud are extremely secure. This also applies in another respect: Many users outside the USA are bothered by what they see as a lack of protection for information stored on American clouds or servers. Amazon Web Services has responded by offering these U.S.-based customers the option of selecting data centers in other locations, such as Germany or Ireland, to benefit from higher standards of protection there. Users can also choose to encrypt the data they store on an Amazon Web Services cloud themselves to prevent unauthorized access to it.
Amazon Web Services as a reliable cash cow for the parent company
The rapid development of this Amazon subsidiary into the market leader for cloud computing, which according to serious estimates accounts for almost a third of global sales, was not thought possible in this form by most experts. Financial analysts are just as positively surprised by the high profits that Amazon Web Services reliably contributes to the Group's overall result year after year. In recent years, the Amazon subsidiary has been able to post revenue returns in the high double-digit percentage range. At the beginning of February 2018, Amazon published glittering figures for the past fiscal year 2017, with the leading online retailer generating consolidated sales of just under 178 billion US dollars, up more than 30 percent on the previous year. In the process, the subsidiary Amazon Web Services was able to grow the most in terms of both revenue and profit: The cloud provider increased its revenue to 17.5 billion dollars and thus by a proud 43 percent, the operating profit reached 4.3 billion dollars and was thus more than 39 percent above the previous year's profit. The attractive returns achieved by Amazon Web Services are all the more remarkable given that the company operates in a fiercely competitive environment that has seen massive price cuts in recent years.
Conclusion:
Amazon Web Services offers cloud computing and its services are meeting with great demand from customers in many different industries worldwide
The subsidiary has bright prospects for the future and makes a significant contribution to Amazon's consolidated revenue and earnings
Amazon's stock market value has exceeded one trillion US dollars in thaiexness20.com/mt5, also thanks to Amazon Web Services