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Amazon Web Services


Amazon Web Services (AWS) is a subsidiary of Amazon
providing on-demand cloud computing platforms and APIs to Amazon Web Services, Inc.
individuals, companies, and governments, on a metered pay-as-
you-go basis. These cloud computing web services provide a
variety of basic abstract technical infrastructure and distributed
computing building blocks and tools. One of these services is
Amazon Elastic Compute Cloud (EC2), which allows users to have
at their disposal a virtual cluster of computers, available all the Type of site Subsidiary
time, through the Internet. AWS's version of virtual computers Key people Andy Jassy
emulates most of the attributes of a real computer, including
(CEO)[1]
hardware central processing units (CPUs) and graphics
processing units (GPUs) for processing; local/RAM memory; Adam Selipsky
hard-disk/SSD storage; a choice of operating systems; (CEO-elect)[2]
networking; and pre-loaded application software such as web Stephen Schmidt
servers, databases, and customer relationship management (CISO)
(CRM).
Matt Garman
The AWS technology is implemented at server farms throughout Charlie Bell
the world, and maintained by the Amazon subsidiary. Fees are Peter DeSantis
based on a combination of usage (known as a "Pay-as-you-go"
model), hardware, operating system, software, or networking Babik Parvez
features chosen by the subscriber required availability, James Hamilton
redundancy, security, and service options. Subscribers can pay for [3]
a single virtual AWS computer, a dedicated physical computer, or
clusters of either. As part of the subscription agreement,[10] Industry Web service,
Amazon provides security for subscribers' systems. AWS operates cloud computing
from many global geographical regions including 6 in North Revenue US$46 billion
America.[11] (2020)[4]

Amazon markets AWS to subscribers as a way of obtaining large Operating US$13.5 billion
scale computing capacity more quickly and cheaply than building income (2020)[5]
an actual physical server farm.[12] All services are billed based on Parent Amazon
usage, but each service measures usage in varying ways. As of Subsidiaries Annapurna Labs
2017, AWS owns a dominant 33% of all cloud (IaaS, PaaS) while
the next two competitors Microsoft and Google have 18%, 9% AWS Elemental
respectively according to Synergy Group.[13][14] NICE[6]
Twitch[7]
URL aws.amazon.com
Contents (http://aws.amazo
n.com)
Services
Launched Web services:
History
July 2002[a]

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Founding (2000–2005) Cloud computing:


S3, EC2, and other first generation services (2006–2010) March 2006[b]

Growth (2010–2015) Current status Active


Market leadership (2016–present)
Customer base
Significant service outages
Availability and topology
Pop-up lofts
Charitable work
Environmental impact
Key people
See also
Notes
References
External links

Services
As of 2021, AWS comprises over 200[15] products and services including computing, storage,
networking, database, analytics, application services, deployment, management, mobile, developer
tools, and tools for the Internet of Things. The most popular include Amazon Elastic Compute Cloud
(EC2), Amazon Simple Storage Service (Amazon S3), Amazon Connect, and AWS Lambda (a
serverless function enabling serverless ETL e.g. between instances of EC2 & S3).[16]

Most services are not exposed directly to end users, but instead offer functionality through APIs for
developers to use in their applications. Amazon Web Services' offerings are accessed over HTTP,
using the REST architectural style and SOAP protocol for older APIs and exclusively JSON for newer
ones.

History

Founding (2000–2005)

The genesis of AWS was when in the early 2000s, experience with building Merchant.com, Amazon's
e-commerce-as-a-service platform for third-party retailers to build their own web-stores, made them
pursue service-oriented architecture as a means to scale their engineering operations [17][18][19][20][21]
[22][23] led by the then CTO, Allan Vermeulen.[24]

Around the same timeframe, Amazon sought out to create "a shared IT platform" so its engineering
organizations which were spending 70% of their time on "undifferentiated heavy-lifting" such as IT
and infrastructure problems could focus on customer-facing innovation instead. [25] Besides, in
dealing with unusual peak traffic patterns especially during the holiday season, migrating services to

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commodity Linux hardware, and reliance on open source software already


had Amazon's Infrastructure team, led by Tom Killalea,[26] Amazon's first
CISO,[27] run their data centers and associated services in a "fast, reliable,
cheap" way.[26]

In July 2002, Amazon.com Web Services, managed by Colin Bryar,[28]


launched its first web services opening up the Amazon.com platform to all
developers.[29] Over a hundred applications were built on top of it by
2004.[30] This unexpected developer interest took Amazon by surprise and Early AWS logo building
convinced them that developers were "hungry for more."[25] blocks along a sigmoid
curve depicting
By the Summer of 2003, Andy Jassy had taken over Bryar's portfolio[31] at recession followed by
Rick Dalzell's behest, after Vermeulen, who was Bezos' first pick, declined growth.
the offer.[24] Jassy subsequently laid down the vision for an "Internet
OS"[17][19][21][32] made up of foundational infrastructure
primitives that alleviated key impediments to shipping software
applications faster.[17][18][19][21][23] By fall 2003,[17][19] databases,
storage, and compute were identified as the first set of
infrastructure pieces that Amazon should launch.[17][19][25]

Jeff Barr, an early AWS employee, credits Vermeulen, Jassy,


Bezos, himself, and a few others for coming up with the idea of
what would evolve into EC2, S3, and RDS,[33] whilst Jassy recalls
that being a result of brainstorming for about a week with "ten of AWS Summit 2013 event in NYC.
the best technology minds and ten of the best product
management minds" on about ten different Internet applications
and the most primitive building blocks required to build them.[21] Werner Vogels puts down
Amazon's desire to make the process of "invent, launch, reinvent, relaunch, start over, rinse, repeat"
as fast as it could be to have led them to breakdown organizational structures with "two-pizza
teams"[c] and application structures with distributed systems;[d] and that these changes ultimately
paved way for the formation of AWS[23] and its mission "to expose all of the atomic-level pieces of the
Amazon.com platform".[36] According to Brewster Kahle, co-founder of Alexa Internet which was
acquired by Amazon in 1999, his start-up's compute infrastructure helped Amazon solve its big data
problems and later informed the innovations that underpinned AWS.[37]

Jassy assembled a founding team of 57 employees from a mix of engineering and business
backgrounds to kick-start these initiatives,[21][20] with a majority of the hires coming from outside the
company;[21] Jeff Lawson, Twilio CEO,[38] Adam Selipsky, Tableau CEO,[39][40] Mikhail Seregine,[41]
Co-founder at Outschool[42] among them.

In late 2003, the concept for compute, which would later launch as EC2, was reformulated when Chris
Pinkham and Benjamin Black presented a paper internally describing a vision for Amazon's retail
computing infrastructure that was completely standardized, completely automated, and would rely
extensively on web services for services such as storage and would draw on internal work already
underway. Near the end of their paper, they mentioned the possibility of selling access to virtual
servers as a service, proposing the company could generate revenue from the new infrastructure
investment.[43] Thereafter Pinkham and lead developer Christopher Brown developed the Amazon
EC2 service, with a team in Cape Town, South Africa.[44]

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In November 2004, the first AWS infrastructure service launched for public usage: Simple Queue
Service (SQS).[45]

S3, EC2, and other first generation services (2006–2010)

On March 14 2006, Amazon S3 cloud storage launched[46] followed by EC2 in August 2006.[47] Andy
Jassy, AWS founder and vice president in 2006, said at the time that Amazon S3 (one of the first and
most scalable elements of AWS) "helps free developers from worrying about where they are going to
store data, whether it will be safe and secure, if it will be available when they need it, the costs
associated with server maintenance, or whether they have enough storage available. Amazon S3
enables developers to focus on innovating with data, rather than figuring out how to store it." [8] Pi
Corporation, a startup Paul Maritz co-founded, was the first beta-user of EC2 outside of Amazon,[21]
whilst Microsoft was among EC2's first enterprise customers.[48] Later that year, SmugMug, one of
the early AWS adopters, attributed savings of around US$400,000 in storage costs to S3.[49]

In September 2007, AWS announced annual Start-up Challenge, a contest with prizes worth
$100,000 for entrepreneurs and software developers based in the US using AWS services such as S3
and EC2 to build their businesses.[50] The first edition saw participation from Justin.tv,[51] which
Amazon would later acquire in 2014.[7] Ooyala, a online media company,[52] was the eventual
winner.[51]

Growth (2010–2015)

In November 2010, it was reported that all of Amazon.com's retail sites had migrated to AWS. [53]
Prior to 2012, AWS was considered a part of Amazon.com and so its revenue was not delineated in
Amazon financial statements. In that year industry watchers for the first time estimated AWS revenue
to be over $1.5 billion.[54]

On 27 November 2012, AWS hosted its first major annual conference, re:Invent with focus on AWS'
partners and ecosystem,[55] with over 150 sessions.[56] The three-day event was held in Las Vegas
because of its relatively cheaper connectivity with locations across the United States and the rest of
the World.[57] Andy Jassy and Werner Vogels presented keynotes, with Jeff Bezos joining Vogels for a
fireside chat.[58] AWS opened early registrations at US$1099 per head for their customers[56] from
over 190 countries.[59] On stage with Andy Jassy at the event which saw around 6000 attendees, Reed
Hastings, CEO at Netflix, announced plans to migrate 100% of Netflix's infrastructure to AWS.[58]

To support industry-wide training and skills standardization, AWS began offering a certification
program for computer engineers, on April 30, 2013, to highlight expertise in cloud computing. [60]
Later that year, in October, AWS launched Activate, a program for start-ups worldwide to leverage
AWS credits, third-party integrations, and free access to AWS experts to help build their business. [61]

In 2014, AWS launched its partner network entitled APN (AWS Partner Network) which is focused on
helping AWS-based companies grow and scale the success of their business with close collaboration
and best practices.[62][63]

In January 2015, Amazon Web Services acquired Annapurna Labs, an Israel-based microelectronics
company reputedly for US$350–370M.[64][65]

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In April 2015, Amazon.com reported AWS was profitable, with sales of $1.57 billion in the first
quarter of the year and $265 million of operating income. Founder Jeff Bezos described it as a fast-
growing $5 billion business; analysts described it as "surprisingly more profitable than forecast". [66]
In October, Amazon.com said in its Q3 earnings report that AWS's operating income was $521
million, with operating margins at 25 percent. AWS's 2015 Q3 revenue was $2.1 billion, a 78%
increase from 2014's Q3 revenue of $1.17 billion.[67] 2015 Q4 revenue for the AWS segment increased
69.5% y/y to $2.4 billion with 28.5% operating margin, giving AWS a $9.6 billion run rate. In 2015,
Gartner estimated that AWS customers are deploying 10x more infrastructure on AWS than the
combined adoption of the next 14 providers.[68]

Market leadership (2016–present)

James Hamilton, who leads AWS' compute, data center, and network design, [69] wrote a retrospective
article in 2016 to highlight the ten-year history of the online service from 2006 to 2016. As an early
fan and outspoken proponent of the technology, he had joined the AWS engineering team in 2008. [70]

In 2016 Q1, revenue was $2.57 billion with net income of $604 million, a 64% increase over 2015 Q1
that resulted in AWS being more profitable than Amazon's North American retail business for the first
time.[71] Jassy was thereafter promoted to CEO of the division.[72] Around the same time, Amazon
experienced a 42% rise in stock value as a result of increased earnings, of which AWS contributed 56%
to corporate profits.[73]

AWS had $17.46 billion in annual revenue in 2017.[74] By end of 2020, the number had grown to $46
billion.[4] Reflecting the success of AWS, Jassy's annual compensation in 2017 hit nearly $36
million.[75]

In January 2018, Amazon launched an autoscaling service on AWS.[76][77]

In November 2018, AWS announced customized ARM cores for use in its servers. [78] Also in
November 2018, AWS is developing ground stations to communicate with customer's satellites. [79]

In 2019, AWS reported 37% yearly growth and accounted for 12% of Amazon's revenue (up from 11%
in 2018).[80]

Customer base
On March 14, 2006, Amazon said in a press release:[8] "More than 150,000 developers have
signed up to use Amazon Web Services since its inception."
In November 2012, AWS hosted its first customer event in Las Vegas.[81]
On May 13, 2013, AWS was awarded an Agency Authority to Operate (ATO) from the U.S.
Department of Health and Human Services under the Federal Risk and Authorization
Management Program.[82]
In October 2013, it was revealed that AWS was awarded a $600M contract with the CIA.[83]
During August 2014, AWS received Department of Defense-Wide provisional authorization for all
U.S. Regions.[84]
During the 2015 re:Invent keynote, AWS disclosed that they have more than a million active
customers every month in 190 countries, including nearly 2,000 government agencies, 5,000

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education institutions and more than 17,500 nonprofits.


On April 5, 2017, AWS and DXC Technology (formed from a merger of CSC and HPE's Enterprise
Services Business) announced an expanded alliance to increase access of AWS features for
enterprise clients in existing data centers.[85]

Notable customers include NASA,[86] the Obama presidential campaign of 2012,[87] and Netflix.[88]

In 2019, it was reported that more than 80% of Germany's listed DAX companies use AWS. [89]

In August 2019, the U.S. Navy said it moved 72,000 users from six commands to an AWS cloud
system as a first step toward pushing all of its data and analytics onto the cloud.[90]

Significant service outages


On April 20, 2011, AWS suffered a major outage. Parts of the Elastic Block Store (EBS) service
became "stuck" and could not fulfill read/write requests. It took at least two days for service to be
fully restored.[91]
On June 29, 2012, several websites that rely on Amazon Web Services were taken offline due to
a severe storm in Northern Virginia, where AWS' largest data center cluster is located.[92]
On October 22, 2012, a major outage occurred, affecting many sites such as Reddit, Foursquare,
Pinterest, and others. The cause was a memory leak bug in an operational data collection
agent.[93]
On December 24, 2012, AWS suffered another outage causing websites such as Netflix to be
unavailable for customers in the Northeastern United States.[94] AWS cited their Elastic Load
Balancing (ELB) service as the cause.[95]
On February 28, 2017, AWS experienced a massive outage of S3 services in its Northern Virginia
region. A majority of websites which relied on AWS S3 either hung or stalled, and Amazon
reported within five hours that AWS was fully online again.[96] No data has been reported to have
been lost due to the outage. The outage was caused by a human error made while debugging,
that resulted in removing more server capacity than intended, which caused a domino effect of
outages.[97]
On November 25, 2020, AWS experienced several hours of outage on the Kinesis service in
North Virginia (us-east-1) region. Other services relying on Kinesis were also impacted.[98][99]

Availability and topology


As of January 2021, AWS has distinct operations in 24 geographical "regions":[11] 7 in North America,
1 in South America, 6 in Europe, 1 in the Middle-East, 1 in Africa and 8 in Asia Pacific.

AWS has announced 6 new regions that will be coming online.[11]

Each region is wholly contained within a single country and all of its data and services stay within the
designated region.[10] Each region has multiple "Availability Zones",[100] which consist of one or more
discrete data centers, each with redundant power, networking and connectivity, housed in separate
facilities. Availability Zones do not automatically provide additional scalability or redundancy within
a region, since they are intentionally isolated from each other to prevent outages from spreading
between Zones. Several services can operate across Availability Zones (e.g., S3, DynamoDB) while

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others can be configured to replicate across Zones to spread demand and avoid downtime from
failures.

As of December 2014, Amazon Web Services operated an estimated 1.4 million servers across 28
availability zones.[101] The global network of AWS Edge locations consists of 54 points of presence
worldwide, including locations in the United States, Europe, Asia, Australia, and South America. [102]

In 2014, AWS claimed its aim was to achieve 100% renewable energy usage in the future.[103] In the
United States, AWS's partnerships with renewable energy providers include Community Energy of
Virginia, to support the US East region;[104] Pattern Development, in January 2015, to construct and
operate Amazon Wind Farm Fowler Ridge;[105] Iberdrola Renewables, LLC, in July 2015, to construct
and operate Amazon Wind Farm US East; EDP Renewables North America, in November 2015, to
construct and operate Amazon Wind Farm US Central;[106] and Tesla Motors, to apply battery storage
technology to address power needs in the US West (Northern California) region.[104]

Pop-up lofts
AWS also has "pop-up lofts" in different locations around the
world.[107] These market AWS to entrepreneurs and startups in
different tech industries in a physical location. Visitors can work
or relax inside the loft, or learn more about what they can do with
AWS. In June 2014, AWS opened their first temporary pop-up
loft in San Francisco.[108] In May 2015 they expanded to New
York City,[109][110] and in September 2015 expanded to Berlin.[111]
AWS opened their fourth location, in Tel Aviv from March 1, 2016
to March 22, 2016.[112] A pop-up loft was open in London from
AWS Loft in SoHo, New York City
September 10 to October 29, 2015.[113] The pop-up lofts in New
York[114] and San Francisco[115] are indefinitely closed due to the
COVID-19 pandemic while Tokyo has remained open in a limited capacity.[116]

Charitable work
In 2017, AWS launched AWS re/Start in the United Kingdom to help young adults and military
veterans retrain in technology-related skills. In partnership with the Prince's Trust and the Ministry of
Defence (MoD), AWS will help to provide re-training opportunities for young people from
disadvantaged backgrounds and former military personnel. AWS is working alongside a number of
partner companies including Cloudreach, Sage Group, EDF Energy and Tesco Bank.[117]

Environmental impact
In January 2021, AWS joined an industry pledge to achieve climate neutrality of data centers by 2030,
the Climate Neutral Data Centre Pact.[118]

Key people
Andrew Jassy (CEO)[75]

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Charlie Bell (SVP)


Werner Vogels (CTO, VP)

See also
Cloud computing comparison
Comparison of file hosting services
Tim Bray
James Gosling

Notes
a. Launched in July 2002, the Amazon Web Services platform exposes technology and product data
from Amazon and its affiliates, enabling developers to build innovative and entrepreneurial
applications on their own.[8]
b. In 2006, Amazon Web Services (AWS) began offering IT infrastructure services to businesses in
the form of web services -- now commonly known as cloud computing.[9]
c. A team shouldn't be any bigger than could be fed with two pizzas.[34]
d. Larger software applications broken down in to smaller services.[35]

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