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AMAZON WEB SERVICES - History, overview

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An overview of AMAZON.COM and its new incursions in the cloud infrastructure.

Published in: Technology

AMAZON WEB SERVICES - History, overview

  1. 1. AMAZON.COM An Internet-enabled Business Growing into a Technology Company Basic Case Study Presented by: DAVID RAMIREZ PVAMU - September, 2008
  2. 2. HISTORY AND QUICK FACTS <ul><ul><li>Founded in 1994 by Jeff Bezos (current CEO and president). </li></ul></ul><ul><ul><li>Corporate office in Seattle, WA </li></ul></ul><ul><ul><li>Business area: e-commerce  </li></ul></ul><ul><ul><li>Web site: www.amazon.com </li></ul></ul><ul><ul><li>Product: amazon.com (launched in 1995) </li></ul></ul><ul><ul><li>17,000 employees (2007) </li></ul></ul><ul><ul><li>  Revenue: $14,84 billion (2007) </li></ul></ul><ul><ul><li>Net income: $476 million (2007)  </li></ul></ul><ul><ul><li>IPO in 1997 </li></ul></ul><ul><ul><li>Web visitors exceed 615 million/yr (as of 2008) </li></ul></ul><ul><ul><li>Initial product: online virtual bookstore </li></ul></ul><ul><ul><li>Progressive extension to other retail products: VHS, CD, DVD, software, video games, electronics, apparel, furniture, toys, food etc. </li></ul></ul><ul><ul><li>Websites in different countries.  </li></ul></ul><ul><ul><li>Global shipping of products. </li></ul></ul><ul><ul><li>Profitable since 2001. </li></ul></ul><ul><ul><li>Partnered with other merchants powering and operating their retail sites (e.g. Target, Sears, Timex, Lacoste). </li></ul></ul><ul><ul><li>Develops its own software (developer centers accross the globe). </li></ul></ul><ul><ul><li>Fulfillment and warehouse centers around the globe, close to airports. </li></ul></ul><ul><li>  </li></ul>
  3. 3. HISTORY AND FACTS - continued <ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>2000: Survived the dot-com bubble burst. </li></ul><ul><li>  </li></ul><ul><li>Popularized on-line shopping (Bezos was TIME magazine's 1999 &quot;Man of the Year&quot;) </li></ul>
  4. 4. CONTINUOUS INTRODUCTION OF NEW e-COMMERCE PRODUCTS <ul><li>New EC products have been introduced through own development or acquisitions, with diverse levels of success: </li></ul><ul><li>  </li></ul><ul><ul><li>1999: Amazon Auctions (competing with eBay) - failure </li></ul></ul><ul><ul><li>1999: zShops (fixed price marketplace) - failure </li></ul></ul><ul><ul><li>2001: Amazon  Marketplace (used books exchange) - success. </li></ul></ul><ul><ul><li>2007: Music store (competing with Apple's iTunes) - ? </li></ul></ul><ul><li>Several acquisitions, e.g. Alexa (Web Traffic), IMDB </li></ul>
  5. 5. AMAZON WEB SERVICES <ul><li>Huge own infrastructure, developers base available worldwide. </li></ul><ul><li>Starts selling inexpensive Web Services: </li></ul><ul><li>S3 – Simple Storage Service : STORAGE </li></ul><ul><li>EC2 – Elastic Compute Cloud : COMPUTER POWER </li></ul><ul><li>SQS – Simple Queue Services : SYSTEM MESSAGING </li></ul><ul><li>SimpleDB – STRUCTURED DATA </li></ul>
  6. 6. S3 – Simple Storage Service <ul><li>Developer-oriented </li></ul><ul><li>Each stored item identified by user key, can be public, private (access rights management). </li></ul><ul><li>Dependable, scalable, inexpensive </li></ul><ul><li>Unlimited objects, from 1 byte to 5 GB </li></ul><ul><li>14 billion objects stored as of January, 2008 </li></ul><ul><li>$0.15 per GB per month, plus charges for data transfers and requests. </li></ul>
  7. 7. EC2 – ELASTIC COMPUTE CLOUD <ul><li>Web Virtual Computer for rent by the hour. </li></ul><ul><li>Elastic: create/eliminate instances on demand, managed or automatically. </li></ul><ul><li>Can have repository of ready-to-go server images on S3. </li></ul><ul><li>From basic servers to high-CPU ( 7 GB of memory, 8 virtual cores, 1690 GB of instance storage on a 64-bit architecture). </li></ul><ul><li>Linux-based (Red Hat); Windows licensing not available yet. May use other Linux distros. </li></ul><ul><li>Developer-oriented, to be used in conjunction with S3. No data transfer fees between EC2<-> S3. </li></ul><ul><li>Fees from $0.10 to $0.80 plus bandwidth (max. 0.17 / GB) </li></ul>
  8. 8. SQS and SimpleDB <ul><li>Simple Queue Service : Messaging between instances, applications. </li></ul><ul><li>Charge $0.01 per 10,000 messages. </li></ul><ul><li>SimpleDB </li></ul><ul><li>Access to structured data, simple model, does not require a schema, use with S3 to store objects. </li></ul><ul><li>$0.14 per hour, plus $1.50 per GB/month </li></ul>
  9. 9. Thank you.

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