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Amazon Web Services Likely Will Become Profitable
| April 18, 2007 – (HOSTSEARCH.COM) – Amazon Web Services (http://www.amazon.com/) are not currently profitable but will do so in the future, suggested the company’s Chief Executive Officer Jeff Bezos this week at the Web 2.0 Expo event in San Francisco. Launched in 2004, demand is rising for the company’s hosted IT infrastructure services, which include storage and server computing. Mr. Bezos cited Amazon’s S3, a hosted storage service, as an example of the company’s success, explaining the service has grown from 800,000 objects stored in mid-2006 to 5 billion. "Managing bandwidth, buying servers, negotiating with hosting companies: none of this stuff helps your idea be any better or gets your product faster to market," explained Mr. Bezos. Amazon provides technical and logistical services to customers using the technologies and operations that manage its own operations. The company has introduced a new model, establishing such services as a “digital utility”, managing and charging on an “on-demand” basis - charging only for storage or server capacity used. The company’s customers include Microsoft. |
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