Amazon Web Services
Amazon Web Services
Services
As of 2021, AWS comprises over 200[14] products and services including computing, storage, networking,
database, analytics, application services, deployment, management, machine learning,[15] 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 Early AWS "building
time on "undifferentiated heavy-lifting" such as IT and infrastructure blocks" logo along a
problems could focus on customer-facing innovation instead.[25] Besides, in sigmoid curve depicting
recession followed by
dealing with unusual peak traffic patterns especially during the holiday
growth.
season, migrating services to 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 convinced them that
developers were "hungry for more."[25]
By the Summer of 2003, Andy Jassy had taken over Bryar's portfolio[31] at Rick Dalzell's behest, after
Vermeulen, who was Bezos' first pick, declined 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 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 among them.
In late 2003, the concept for compute,[e] 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]
In November 2004, the first AWS infrastructure service launched for public usage: Simple Queue Service
(SQS).[45]
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 "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."[7] 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.[6] Ooyala, an online media company,[52] was the eventual winner.[51]
Additional AWS services from this period include SimpleDB, Mechanical Turk, Elastic Block Store,
Elastic Beanstalk, Relational Database Service, DynamoDB, CloudWatch, Simple Workflow, CloudFront,
and Availability Zones.
Growth (2010–2015)
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]
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.[3] Reflecting the success of AWS, Jassy's annual compensation in 2017 hit nearly $36 million.[75]
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]
In April 2021, AWS reported 32% yearly growth and accounted for 32% of $41.8 billion cloud market in
Q1 2021.[81]
Customer base
On March 14, 2006, Amazon said in a press release:[7] "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.[82]
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.[83]
In October 2013, it was revealed that AWS was awarded a $600M contract with the CIA.[84]
During August 2014, AWS received Department of Defense-Wide provisional authorization
for all U.S. Regions.[85]
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
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.[86]
Notable customers include NASA,[87] the Obama presidential campaign of 2012,[88] and Netflix.[89]
In 2019, it was reported that more than 80% of Germany's listed DAX companies use AWS.[90]
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.[91]
In 2021, DISH Network announced they will develop and launch its 5G network on AWS.[92]
AWS is about to launch 15 more of their availability zones and again separately five more zones in
Australia, India, Indonesia, Spain, and Switzerland.[10]
Each region is wholly contained within a single country and all of its data and services stay within the
designated region.[9] Each region has multiple "Availability Zones",[102] 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 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.[103] 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.[104]
In 2014, AWS claimed its aim was to achieve 100% renewable energy usage in the future.[105] In the
United States, AWS's partnerships with renewable energy providers include Community Energy of
Virginia, to support the US East region;[106] Pattern Development, in January 2015, to construct and
operate Amazon Wind Farm Fowler Ridge;[107] 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;[108] and Tesla Motors, to apply battery storage
technology to address power needs in the US West (Northern California) region.[106]
Pop-up lofts
AWS also has "pop-up lofts" in different locations around the
world.[109] 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.[110] In May 2015 they expanded to New York
City,[111][112] and in September 2015 expanded to Berlin.[113]
AWS opened their fourth location, in Tel Aviv from March 1,
2016, to March 22, 2016.[114] A pop-up loft was open in London
AWS Loft in SoHo, New York City
from September 10 to October 29, 2015.[115] The pop-up lofts in
New York[116] and San Francisco[117] are indefinitely closed due
to the COVID-19 pandemic while Tokyo has remained open in a
limited capacity.[118]
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.[119]
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.[120]
Denaturalization protest
US Department of Homeland Security has employed the software ATLAS, which run on Amazon Cloud.
It scanned more than 16.5 million of records of naturalized Americans and flagged approximately 124.000
of them for manual analysis and review by USCIS officers regarding denaturalization.[121][122] Some of
the scanned data came from Terrorist Screening Database and National Crime Information Center. The
algorithm and the criteria for the algorithm were secret. Amazon faced protests from its own employees and
activists for the anti-migrant collaboration with authorities.[123]
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.[7]
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.[8]
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]
e. code-named Amazon Execution Service in the pre-launch phase.[42]
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