How did Amazon get so good? 6 reasons for its success

  • Amazon’s robust cloud initiatives are a big addition to the company’s portfolio, with cloud computing challenging the limitations of on-premises platforms.
  • Amazon’s services are popular among the world’s leading software development and e-commerce development companies, helping to reduce costs and accelerate innovation.

AWS is a leader in cloud computing and a core component of Amazon’s business. In the second quarter of 2021, AWS achieved net sales of $14.8 billion, contributing more than 13% of Amazon’s revenue and continuing to grow at a rate of 30%. However, what factors have driven its success?

Also read: Amazon launches online shopping services in South Africa   

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6 factors for success

1. Diverse range of services  

AWS offers an extensive array of cloud computing services, encompassing computing power, storage, databases, networking, developer tools, security, and machine learning capabilities. These varied services empower businesses to fulfill diverse IT requirements and deploy a wide range of applications in the cloud.

2. Cost-effectiveness  

AWS operates on a pay-as-you-go pricing model, where businesses only pay for the specific resources they use, without the need for long-term commitments or upfront fees. This economic pricing model, coupled with AWS’s ability to optimise resource utilisation, helps enterprises reduce IT infrastructure costs and enhance cost efficiency.

3. Scalability  

Many businesses face challenges with fluctuating demand throughout the year, encountering scalability issues during peak periods and underutilisation at other times. AWS addresses this with highly scalable services that are billed based on actual usage. This flexibility allows enterprises to dynamically scale resources up or down as needed, avoiding the expenses associated with maintaining excessive capacity during low-demand periods.

4. Reliability  

Managing an in-house data center can be complex and risky, involving substantial costs for infrastructure construction and ongoing maintenance. AWS mitigates these challenges with multiple data centers located across countries like Canada, India, and Japan. These facilities undergo rigorous monitoring and are protected against various physical and virtual threats, ensuring high reliability and uptime for customers.

5. Robust security  

AWS places a strong emphasis on safeguarding sensitive data, employing rigorous operational and physical security measures across its global network of data centers. Advanced security features such as encryption, identity and access management, network security, and continuous monitoring are implemented to help businesses create secure and compliant cloud environments. AWS adheres to stringent industry standards and certifications, including HIPAA, PCI DSS Level 1, and ISO 27001, ensuring comprehensive protection against sophisticated cyber threats.

6. Mobile accessibility  

AWS services are designed to be accessible via smartphones, supporting both Android and iOS platforms. The AWS Management Console mobile app enables customers to monitor and manage their AWS resources on the go, facilitating seamless communication and operations for employees who work remotely or travel frequently.

Sissy-Li

Sissy Li

Sissy Li, a news reporter at BTW media dedicated in Fintech and Blockchain. She graduated from Macau University of Technology and Science. Send tips to s.li@btw.media.

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