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Businesses don’t need their own servers with cloud services

 

Amazon Web Services (AWB) – the business that nobody has heard of turns out to be the business everyone has – cloud services.

Amazon is a household name up there with McDonalds, Apple and Coca Cola and enjoying sales of around £15bn in a quarter.

Amazon Web Services generated over a billion pounds of that in the same quarter and sales (and profits) are rising.

AWS is clearly an arm of the Amazon giant that bosses feel will becoime ever more important as businesses realise the potential for hiving off more and more infrastructure they cannot run themselves.

 

Enabling Start-Ups

As businesses are continuously being told to change, it’s interesting to see how far already all cloud services, but especially Amazon’s cloud services, are enabling change at an exponential rate.

AWS is credited with playing a key role in successful start-ups like Pinterest, Spotify, Hailo, Just Eat and Airbnb. The AWS provision of cloud space to save their data in and run systems through removes the need for businesses to buy and maintain expensive servers themselves.

Adam Selipsky is the man who runs AWS and he told The Telegraph’s Graham Ruddick (May 2015) that if start-ups had to raise capital for infrastructure, they couldn’t. Through the cloud businesses can get going ‘within a matter of 15 minutes.’

No longer do companies have to build or rent data centres, ‘worry about bandwidth contracts or servers going down in the middle of the night.’

Selipsky argued that the benefits of flexibility, speed and cost savings are a revolution that has only just begun.

Security Is A Concern

He acknowledged that people still worry about data security in shared clouds. He said that they divide data across 11 global (and secret) centres. ‘We can lose an entire data centre and customers won’t lose any data,’ he said.

Rebutting the argument that it is ‘dangerous’ for one company to have such control over people’s data with the information that as customers own their data they can encrypt it and handle the keys. AWS does not look at the data.

Clearly they are getting it right after nine years in the game. It is believed that their server capacity is more than 14 times that of their nearest rivals added together!

That may change as some of those rivals like Google, IBM and Microsoft seek to catch up and get a toehold in the cloud market.

Business Mindsets

Amazon maestro Jeff Bezos holds the philosophy that long-term goals outweigh quarterly profit targets in business planning. To that end AWS has improved services while consistently cutting prices.

Selipsky explained to Ruddick that when costs are cut, there are two choices.

‘keep the extra margin, which is a legitimate business strategy’, or
‘pass the savings to customers by lowering prices.’

That second one is the new model that a cost-conscious marketplace now expects with ever more frequency. That is perhaps how more start-ups will succeed and more old-school businesses will have to change or disappear.

If you want to know more about how AWS cloud services can help your business, just ask us at MailBigFile … we know!

Cloud-related blogs from MBF:

Indestructible Cloud-Systems Inspired by the Cockroach, 23 September 2014

Trying Not to Cloud the Current Live Issues of the Digital Era, 25 June 2013

The Cloud and The Crowd Could Save the Cyberworld from the Cyber Crime Blitz, 27 March 2013

What If the Cloud Was a Country, How Green Would It Be?, 20 February 2013

Image: Hugovanmeijeren