Amazon’s New Store

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Amazon’s new store: utility computing Case study

1. What technology services does Amazon provide? What are the business advantages to Amazon & to

benefit from these services? Answer:-

In March 2006, the founder of “Amazon.com” Jeff Bezos made the strategic decision to capitalize on Amazon’s largely unused computing capacity by moving forward in the cloud utility computing market and adding two computing products to the Amazon Web Services (AWS): Simple Storage Service (S3) and Elastic Compute Cloud (EC2). Nowadays, S3 and EC2 are Amazon’s most well-known and central Amazon Web Services (AWS) Both S3 and EC2 provide business advantages and disadvantages to both Amazon and customers. By exploiting its large quantity of unused computing capacity, Amazon creates for itself an additional source of revenue.

A major selling point for Amazon Web Services is its pay-as-you-go feature, which allows subscribers to take advantage of Amazon’s tremendous computing capacity with no contracts, no start-up fee, no minimum fee, and a low total cost of ownership (TCO).Although Amazon considers its pay-as-you-go model a competitive advantage, potential subscribers may be deterred from using a cloud computing service that does not offer service level agreements(SLAs), which guarantee the contracted delivery time of the service. Many businesses know how to, and definitely already make, benefit from S3 and EC2. Amazon initially targeted micro-businesses and web-startups, but is now a magnet for mid-sized businesses and potential big players in e-business, as well. AWS subscribers include Mile Meter, Inc., a start-up selling car insurance by the mile; Webmail.us, which provides email management services for companies worldwide; Power set, an up-and-coming search engine company; Smug Mug Inc., an online photo-sharing startup; and Drop box, Inc., a web-based file hosting service

2. How do the concepts of capacity planning, scalability, and TCO...