![]() How AWS' cloud business model works today How Amazon exposed its guts: The history of AWS' EC2.By the time they were, only the people inspired by the vision they had - including Jeff Bezos - were available to make it a reality. But the components were not present at that time to implement that vision. Engineers and business visionaries did have this concept in mind as early as the 1960s. Rather than being a manufacturing center, a cloud service provider (CSP) is the propagator of software.Īmazon did not invent this business model. This is the function of a distributed cloud platform, which completely and entirely replaces the old VAR-oriented software sales channel. Convenience dictates that the point of access for software be centralized, but that the actual locations of these running functions be distributed, and their operations centrally orchestrated. What matters now are the connections through which those functions are made useful, in a healthy and growing Internet. So the sales channel that constituted the circulatory system of this economy, was effectively a durable goods channel that depended on inventory, shipping, and transportation logistics.Īfter Amazon, software is active functionality, which a service contract grants you the rights to use. Software had almost always been architected as services, more or less using SOA principles, but its dissemination in a functional economy required it to be manufactured, like any other durable good. What mattered was where it was installed, and convenience dictated that such installations be local. Prior to Amazon, software was intellectual property, which a license granted you the rights to have. eruption of Mount Vesuvius was a "spillover." It was a "disruption" on the same scale that the 79 A.D. The alteration in the IT market made by Amazon was fundamental. This made high-quality service feasible for small and medium-sized businesses for the first time. ![]() Once Amazon had a cadre of e-commerce customers, it established its first cloud business model around making its infrastructure available on a pay-as-you-go basis. So let's try to explain what this AWS thing does, in terms even a CEO could understand. For example, in this letter, he gave AWS credit for essentially inventing service-oriented architecture (SOA) - he was, at best, a teenager when SOA was first being put to practical use. This approach reduces side effects and allows services to evolve at their own pace without impacting the other components of the overall system.īezos likes to adorn his biographical presentations with veritable fountains of fabulous phrases, along with boasts that may warrant a bit of suspicion. Our technologies are almost exclusively implemented as services: bits of logic that encapsulate the data they operate on and provide hardened interfaces as the only way to access their functionality. Many of the problems we face have no textbook solutions, and so we - happily - invent new approaches. …While many of our systems are based on the latest in computer science research, this often hasn't been sufficient: Our architects and engineers have had to advance research in directions that no academic had yet taken. Jeff Bezos explained his company's basic philosophy in clear and indisputable terms, in a 2010 letter to company shareholders: Since its inception, though, AWS has grown into the world's principal provider of virtual infrastructure - the operating systems, hypervisors, service orchestrators, monitoring functions, and support systems upon which the economy of the public cloud is based. Amazon founder Bezos will give CEO role to AWS leader Andy Jassy, become executive chairmanĪmazon Web Services, as was evident from the division's original name, enables Web sites to be hosted remotely.
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