Amazon Web Services (AWS) facts

Hidden in the Cloud: Amazon Web Services (AWS) Facts

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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?

A server room in a datacenter

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

CompanyEstimated Spend per MonthEstimated Spend per Year
Netflix$19 million/month$228 million/year
Twitch$15 million/month$180 million/year
LinkedIn$13 million/month$156 million/year
Facebook$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
Twitter$7 million/month$84 million/year
Source: Intricately

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

YearRevenue
2013$3.1 billion
2014$4.6 billion
2015$7.9 billion
2016$12.2 billion
2017$17.5 billion
2018$25.7 billion
2019$35 billion
Source: Statista

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.

The Story of Amazon: How a Bookstore Conquered the Internet

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QUOTE:
"We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light."
-- Plato

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