Amazon: giant of e-commerce, and now cloud

Amazon: giant of e-commerce, and now cloud

The Amazon division specializing in cloud computing activities, Amazon Web Service, has just recorded record profits at the end of the third quarter of this year, which places it in the highest levels of the sector.

Amazon , the American heavyweight of recognized e-commerce, would it be gradually integrating into a much less expected role of leader in the cloud market ? This is in any case what Jérôme Marin seems to reveal , on the blog Silicon 2.0 , for the newspaper Le Monde . If Amazon’s trade body would still be as lucrative for the group, with $ 472 million in profits over the period , its cloud activities would however reach 521 million over the same period , making this sector the source main revenue for the group, and this forthe first time in its history .

Amazon and the cloud: the reasons for success

The history of Amazon and the cloud is above all a history of strategy: its president and founder Jeff Bezos was one of the first to capitalize on the inherent potential in this field. In 2006 , the AWS service was launched: it therefore offered to companies and administrations to make available the servers owned by Amazon for their data storage, saving a heavy investment cost for these companies for the creation of their own infrastructure. computer science.

The bet is a success. With nearly a million customers , AWS ensures its objective, with a double interest: that of financing the installation of its own IT infrastructures that the company needs, as well as ensuring a diversification of Amazon’s activities , initially focused on online commerce, through the cloud with far higher margins.

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In the third quarter of 2015, Amazon received a profit of $ 521 million thanks to its cloud-oriented branch.

The firm Synergy , specialized expertise related to strategic decisions for companies, estimates the cloud industry generating more than 16 billion in sales in 2014. With the top of the hierarchy: Amazon , which holds nearly ‘a third of the market share , far ahead of the behemoths of IT such as Microsoft , Google or IBM . Indeed, its service seduces: regularly updated and innovative, it would be credited with the best rate in terms of efficiency on the whole market , according to the Gartner Institute .

A leader therefore, but who does not, however, keep himself safe from a flashback . The Amazon group remains at risk of being joined by the peloton, despite its dominant position in the sector. Fighting a real price war, its main competitors also remain big names in the IT field: IBM manages to catch up via the counterattack on a parallel market, that of the hybrid cloud , by the acquisition in 2013 of the company SoftLayer . A real Achilles heel from Amazon which, despite numerous investments , is lagging behind in this area .

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