The challenge
Like other companies, Amazon's IT infrastructure was viewed as a cost center, focusing primarily on supporting the company's retail operations. But Amazon realised that every other company was dealing with the same server hosting challenges.
The approach
Amazon Web Services (AWS) was launched to monetize Amazon’s robust IT infrastructure by offering cloud services to external customers. This initiative leveraged Amazon’s expertise in scalable, reliable, and cost-effective infrastructure management. AWS provided a wide range of services, including computing power, storage, and databases, to businesses of all sizes.
Key Actions:
- Launched AWS to offer cloud computing services externally.
- Utilized existing infrastructure to minimize initial costs.
- Focused on scalability, reliability, and cost-effectiveness.
- Continuously expanded service offerings to meet diverse customer needs.
- Established a pay-as-you-go pricing model to attract a broad customer base.
Reported outcomes
Amazon’s experience separating its retail services informed the design of AWS. Rather than exposing spare infrastructure, AWS was built as a set of focused services that customers could combine. The lesson is to turn shared capabilities into usable products, so other teams can build without coordinating every change with their providers.