Amazon Web Services

Amazon Web Services, Inc.
Type of site
Web service, cloud computing
Owner Amazon.com
Website aws.amazon.com
Launched March 2006 (2006-03)[1][2]

Amazon Web Services (AWS) describes both a technology and a company. The company AWS is a subsidiary of Amazon.com and provides on-demand cloud computing platforms to individuals, companies and governments, on a paid subscription basis with a free-tier option available for 12 months. The technology allows subscribers to have at their disposal a full-fledged virtual cluster of computers, available all the time, through the internet. AWS's version of virtual computers have most of the attributes of a real computer including hardware (CPU(s) & GPU(s) for processing, local/RAM memory, hard-disk/SSD storage); a choice of operating systems; networking; and pre-loaded application software such as web servers, databases, CRM, etc. Each AWS system also virtualizes its console I/O (keyboard, display, and mouse), allowing AWS subscribers to connect to their AWS system using a modern browser. The browser acts as a window into the virtual computer, letting subscribers log-in, configure and use their virtual systems just as they would a real physical computer. They can choose to deploy their AWS systems to provide internet-based services for their own and their customers' benefit.

The AWS technology is implemented at server farms throughout the world, and maintained by the Amazon subsidiary. Fees are based on a combination of usage, the hardware/OS/software/networking features chosen by the subscriber, required availability, redundancy, security, and service options. Based on what the subscriber needs and pays for, they can reserve a single virtual AWS computer, a cluster of virtual computers, a physical (real) computer dedicated for their exclusive use, or even a cluster of dedicated physical computers. As part of the subscription agreement,[3] Amazon manages, upgrades, and provides industry-standard security to each subscriber's system. AWS operates from many global geographical regions including 6 in North America.[4]

In 2016, AWS comprised more than 70 services spanning a wide range including computing, storage, networking, database, analytics, application services, deployment, management, mobile, developer tools, and tools for the Internet of Things. The most popular include Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3). Most services are not exposed directly to end users, but instead offer functionality through APIs for developers to use in their applications. Amazon Web Services’ offerings are accessed over HTTP, using the REST architectural style and SOAP protocol.

Amazon markets AWS to subscribers as a way of obtaining large scale computing capacity more quickly and cheaply than building an actual physical server farm.[5] All services are billed based on usage, but each service measures usage in varying ways.

Availability and Topology

Map showing Amazon Web Services' availability zones within geographic regions around the world.

As of 2017, AWS has distinct operations in the following 16 geographical "regions":[4]

AWS has announced that 3 new regions (having 7 Availability Zones) will come online throughout 2017 in China, India, and the United Kingdom.[4]

Each region is wholly contained within a single country and all of its data and services stay within the designated region.[3] Each region has multiple "Availability Zones",[8] which consist of one or more discrete data centers, each with redundant power, networking and connectivity, housed in separate facilities. Availability Zones do not automatically provide additional scalability or redundancy within a region, since they are intentionally isolated from each other to prevent outages from spreading between Zones. Several services can operate across Availability Zones (e.g., S3, DynamoDB) while others can be configured to replicate across Zones to spread demand and avoid downtime from failures.

As of December 2014, Amazon Web Services operated an estimated 1.4 Million servers across 28 availability zones.[9] The global network of AWS Edge locations consists of 54 points of presence worldwide, including locations in the United States, Europe, Asia, Australia, and South America.[10]

In 2014, AWS committed to achieving 100% renewable energy usage.[11] In the United States, AWS's partnerships with renewable energy providers include:

Region and region names table [15]

Region Name Region
US East (N. Virginia) us-east-1
US East (Ohio) us-east-2
US West (N. California) us-west-1
US West (Oregon) us-west-2
Canada (Central) ca-central-1
China (Beijing) cn-north-1
Asia Pacific (Mumbai) ap-south-1
Asia Pacific (Seoul) ap-northeast-2
Asia Pacific (Singapore) ap-southeast-1
Asia Pacific (Sydney) ap-southeast-2
Asia Pacific (Tokyo) ap-northeast-1
EU (Frankfurt) eu-central-1
EU (Ireland) eu-west-1
EU (London) eu-west-2
South America (São Paulo) sa-east-1
AWS GovCloud (US) us-gov-west-1

History

AWS Summit 2013 event in NYC.

The AWS platform was launched in July 2002 to "expose technology and product data from Amazon and its affiliates, enabling developers to build innovative and entrepreneurial applications on their own."[2] In the beginning, the platform consisted of only a few disparate tools and services. Then in late 2003, the AWS concept was publicly reformulated when Chris Pinkham and Benjamin Black presented a paper describing a vision for Amazon's retail computing infrastructure that was completely standardized, completely automated, and would rely extensively on web services for services such as storage and would draw on internal work already underway. Near the end of their paper, they mentioned the possibility of selling access to virtual servers as a service, proposing the company could generate revenue from the new infrastructure investment.[16] In November 2004, the first AWS service launched for public usage: Simple Queue Service (SQS).[17] Thereafter Pinkham and lead developer Christoper Brown developed the Amazon EC2 service, with a team in Cape Town, South Africa.[18]

Amazon Web Services was officially re-launched on March 14, 2006,[2] combining the three initial service offerings of Amazon S3 cloud storage, SQS, and EC2. The AWS platform finally provided an integrated suite of core online services, as Chris Pinkham and Benjamin Black had proposed back in 2003,[16] as a service offered to other developers, web sites, client-side applications, and companies.[1] Andy Jassy, AWS founder and vice president in 2006, said at the time that Amazon S3 (one of the first and most scalable elements of AWS) "helps free developers from worrying about where they are going to store data, whether it will be safe and secure, if it will be available when they need it, the costs associated with server maintenance, or whether they have enough storage available. Amazon S3 enables developers to focus on innovating with data, rather than figuring out how to store it."[2] His quote marks a milestone in the Internet's history, when massive managed resources became available to developers worldwide, allowing them to offer new scalable web-enabled technologies. In 2016 Jassy was promoted to CEO of the division.[19] Reflecting the success of AWS, his annual compensation in 2017 hit nearly $36 million.[20]

To support industry-wide training and skills standardization, AWS began offering a certification program for computer engineers, on April 30, 2013, to highlight expertise in cloud computing.[21]

James Hamilton, an AWS engineer, wrote a retrospective article in 2016 to highlight the ten-year history of the online service from 2006 to 2016. As an early fan and outspoken proponent of the technology, he had joined the AWS engineering team in 2008.[22]

Growth and Profitability

In November 2010, it was reported that all of Amazon.com's retail sites had been completely moved under the AWS umbrella.[23] Prior to 2012, AWS was considered a part of Amazon.com and so its revenue was not delineated in Amazon financial statements. In that year industry watchers for the first time estimated AWS revenue to be over $1.5 billion.[24]

In April 2015, Amazon.com reported AWS was profitable, with sales of $1.57 billion in the first quarter of the year and $265 million of operating income. Founder Jeff Bezos described it as a fast-growing $5 billion business; analysts described it as "surprisingly more profitable than forecast".[25] In October 2015, Amazon.com said in its Q3 earnings report that AWS's operating income was $521 million, with operating margins at 25 percent. AWS's 2015 Q3 revenue was $2.1 billion, a 78% increase from 2014's Q3 revenue of $1.17 billion.[26] 2015 Q4 revenue for the AWS segment increased 69.5% y/y to $2.4 billion with 28.5% operating margin, giving AWS a $9.6 billion run rate. In 2015, Gartner estimated that AWS customers are deploying 10x more infrastructure on AWS than the combined adoption of the next 14 providers.[27]

In 2016 Q1, revenue was $2.57 billion with net income of $604 million, a 64% increase over 2015 Q1 that resulted in AWS being more profitable than Amazon's North American retail business for the first time.[28] In the first quarter of 2016, Amazon experienced a 42% rise in stock value as a result of increased earnings, of which AWS contributed 56% to corporate profits.[29][30]

With a 50% increase in revenues the past few years, AWS is predicted to have $13 billion in revenue in 2017.[31]

Customer base

Notable customers include NASA,[38] the Obama presidential campaign of 2012,[39] Kempinski Hotels,[40] and Netflix.[41]

Significant service outages

List of products

Compute

Networking

Content delivery

Contact Center

Storage and content delivery

Database

Deployment

Management

Application services

Analytics

Miscellaneous

Pop-up lofts

In June 2014 AWS opened their first temporary Pop-up Loft, in San Francisco, to help businesses discover their services.[69] In May 2015 they expanded to New York City,[70][71] and in September 2015 expanded to Berlin.[72] AWS opened their fourth location, in Tel Aviv from March 1, 2016 to March 22, 2016.[73] A Pop-up Loft was open in London from September 10 to October 29, 2015.[74]

Charitable work

In 2017 AWS launched a program in the United Kingdom to help young adults and military veterans retrain in technology-related skills. In partnership with the Prince's Trust and the Ministry of Defence (MoD), AWS will help to provide re-training opportunities for young people from disadvantaged backgrounds and former soldiers who have left the military. AWS is working alongside a number of partner companies including Cloudreach, Sage, EDF Energy and Tesco Bank.[75]

Key People

References

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