Amazon's creation of AWS cloud computing may go down as the most influential breakthrough Amazon has managed.
SEATTLE — Twenty years ago, Amazon.com Inc. was an online bookstore that was powered by the same servers and systems that other companies used.
It’s the story of a project designed to solve a software and database system that at the time limited the e-commerce pioneer to selling books. Beyond spurring Amazon to incredible growth beyond books, AWS blossomed into an industry-shifting technology that lets companies rent computer power and offers tools to businesses and other organizations over the internet.
Amazon began to splinter its three largest data sets — customers, goods and orders — into separate items that, in turn, were broken down into smaller units, such as login information or security requirements. At the same time, Amazon began offering computer systems and tools, such as renting IT infrastructure and applications online to other tech ventures, so they could sell their own products via Amazon.com.
“Ten years ago, [Amazon CEO] Jeff [Bezos] and Andy [Jassy] understood [machine learning] would transform Amazon in a big way,” Swami Sivasubramanian, vice president responsible for artificial intelligence and machine learning at AWS, told MarketWatch. The behemoth of a booming industry As first to market, AWS has benefited handsomely — revenue catapulted 47% to $25.7 billion in 2018, Amazon reported. Amazon accounted for 48% of the $32.4 billion in global sales generated by providers in the infrastructure as a service, or IaaS, market, according to a report from market researcher Gartner Inc.
AWS has “built a sizable ecosystem to support the variety and scale of needs required by its customers,” said Lindsey Koshansky, vice president of clinical innovation at Locus Health, a Charlottesvile, Va.-based digital-health company that is an AWS customer. AWS’s sheen of invincibility in the cloud was punctured in October, when what looked like a slam-dunk contract win of a 10-year, $10 billion pact with the Pentagon, known as JEDI, turned into a shocking loss to Microsoft and warnings from some analysts of a fundamental shift in where the market is headed.
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