Were you aware that up to 1/3rd of the internet is running on hardware owned by a single company?
That’s right, a single company! But can you guess which one?
Amazon Web Services, or just AWS, is the internet’s biggest cloud computing platform — it spans 190 countries and services more than 1 million businesses. It’s crazy to think too that AWS started in only 2006.
And surprisingly, the company isn’t showing any signs of slowing down.
Consider the following facts:
- In 2020, 1 in 3 people using the internet interact with hardware owned and managed by AWS.
- In 2018, AWS controlled more than half of the total “cloud”-market.
That’s total domination by a company that already controls global e-commerce. Just wow!
But how about this fact — AWS is the primary profit driver for Amazon! Yep, that’s right! In 2020, AWS generated over 10 billion dollars for the company.
So what exactly is a “cloud computing platform” and why do so many companies use them?
In simple terms, a cloud computing platform like AWS leases to companies virtualized hardware and software so they (the companies) don’t have to physically manage servers or even purchase equipment.
Simply put, it’s a more efficient and cost effective way for companies to conduct business on the internet.
In effect, companies pay Amazon to manage their infrastructure so that they can concentrate on what they do best — their business.
Here are a few key data points that emphasize the scale of the AWS platform.
Top 10 Amazon Web Services (AWS) Customers
|Company||Estimated Spend per Month||Estimated Spend per Year|
|Netflix||$19 million/month||$228 million/year|
|Twitch||$15 million/month||$180 million/year|
|$13 million/month||$156 million/year|
|$11 million/month||$132 million/year|
|Turner Broadcasting||$10 million/month||$120 million/year|
|BBC||$9 million/month||$108 million/year|
|Baidu||$9 million/month||$108 million/year|
|ESPN||$8 million/month||$96 million/year|
|Adobe||$8 million/month||$96 million/year|
|$7 million/month||$84 million/year|
The fact that the above companies use AWS is by itself big news, but just look at the scale of what they pay! Netflix alone pays AWS over $200 million dollars a year!
Amazon Web Services (AWS) Revenue from 2013 to 2019
AWS will continue to grow in the foreseeable future as the internet matures and connectivity around the world increases.
Despite how connected we seemingly are, as of October 2020, only 59% of our planet has access to the internet. Needless to say, there’s still a lot of growth left and with it, unimaginable technological advancement.
AWS will certainly be at the forefront of this.
I wouldn’t be surprised if AWS double its revenue over the next few years — especially with COVID-19 changing the way we interact.