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What made AWS the leader in the cloud industry?

6 Mins read
AWS for web hosting

What does it take to create a business that stays ahead of the entire industry? It’s simple to explain but much harder to do:

  • A strong vision. CEOs who have a clear vision and understand the steps they need to take for their company to emerge victorious are integral players in success stories.
  • Continuous innovation. Companies must continually innovate their products, services, and business models to meet changing customer needs and market trends. This requires a culture of experimentation, risk-taking, and a willingness to learn from failures.
  • Agility and adaptability. Industries are constantly evolving, and companies that can adapt quickly to changing market conditions, customer preferences, and technological advances are more likely to succeed.

Now, let’s examine the incredible success of Amazon Web Services (AWS), the subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to governments, individuals, and companies, and on a metered, pay-as-you-go basis.

AWS has been one of the most influential pioneers in the cloud industry. As of Q1 2022, AWS held a 33% share of the cloud infrastructure market, making it the largest provider of cloud computing services.

AWS

AWS has experienced exponential growth over the past decade, which has contributed to its increasing market share. According to data from Synergy Research Group, AWS’s revenue grew from around $2.1 billion in 2012 to $45 billion in 2019, an increase of over 21 times in just seven years. This kind of growth is unprecedented in the cloud industry and has helped AWS to become the dominant player in the market.

Let’s understand the reasons for AWS domination in the cloud computing market:

First mover advantage

One of the factors that have contributed to AWS’s success is its early entry into the market. AWS was launched in 2006 when the concept of cloud computing was still relatively new. By being an early mover, AWS was able to establish itself as a dominant player in the industry and build a strong brand reputation. Additionally, AWS has been able to leverage its parent company’s expertise in e-commerce and logistics to create a highly efficient and scalable cloud infrastructure.

Efficient use of resources

Amazon’s experience in building and refining its systems for operating an e-commerce business at scale gave it a unique advantage in the cloud computing market. AWS was able to leverage its technology infrastructure and data centers to create a cloud platform that other businesses could use to build and run their applications. This approach allowed AWS to test and refine its services in real-world scenarios before offering them to customers. Additionally, Amazon’s existing relationships with developers and its experience in building APIs helped AWS attract a large and loyal customer base.

Breadth and depth of services

AWS offers a wide range of services, which provides customers with the flexibility to choose the services they need to build and scale their applications. These services are available on a pay-as-you-go basis, allowing customers to only pay for the resources they use. AWS also provides a range of tools and resources to help customers manage their services, automate workflows, and monitor their applications. This breadth and depth of services are one of the key reasons for AWS’s dominance in the cloud computing market.

Reliability and security

AWS has a strong focus on reliability and security, which is essential for the customers who rely on their services to keep their businesses running smoothly. AWS has a global network of data centers that are designed for high availability, and they use advanced technologies to ensure that their systems are resilient and can handle a wide range of scenarios, including unexpected spikes in demand or equipment failures. In terms of security, AWS provides multiple layers of protection, including network security, access controls, and encryption. They also comply with a wide range of security and privacy standards, such as ISO 27001, SOC 2, and HIPAA, which is important for customers in industries that require compliance with these regulations.

Cost-effectiveness

Amazon has a track record of reducing prices and introducing new services to help customers get more value from their resources. This approach not only helps AWS retain its existing customers but also attracts new customers who are looking for cost-effective solutions for their business needs.

Moreover, AWS’s Trusted Advisor service is an excellent example of how the company helps its customers optimize their usage and save money. By notifying customers of low or idle resources, AWS is enabling them to make informed decisions about their spending and avoid unnecessary costs.

AWS for web hosting

Focus on Data

Amazon’s focus on tracking and analyzing data is a key factor in its success with AWS. By reviewing thousands of metrics during weekly business reviews, AWS can identify areas for improvement and take action to optimize its services and operations continually.

Using AWS for Cloud Hosting

AWS has established itself as a leader in the cloud industry, and its performance is highly impressive.

AWS offers various services that can help businesses host their websites and web applications with ease, including Amazon EC2 for virtual machine instances, Amazon S3 for storage, and Amazon CloudFront for content delivery, each with its pricing structure. Few AWS services at a glance:

  • Amazon Elastic Compute Cloud (EC2)

Amazon Elastic Compute Cloud (EC2) provides resizable compute capacity in the cloud. It allows you to rent virtual machines (referred to as “instances”) on which you can run your own applications.

  • Amazon Lightsail

Amazon Lightsail makes it easy to set up, operate, and scale web applications and websites. A simplified version of Amazon EC2, Lightsail provides a simpler user interface and pre-configured services for web hosting, databases, and email.

  • Amazon Simple Storage Service (S3)

Amazon S3 is a highly scalable, object storage service that allows you to store and retrieve large amounts of data from anywhere on the internet. S3 is a highly reliable, scalable, and cost-effective solution.

  • Amazon Elastic Block Store (EBS)

Amazon EBS is a block-level storage service for use with Amazon EC2 instances. EBS provides persistent storage, meaning that the data on an EBS volume will persist independently of the lifetime of the EC2 instance to which it is attached.

  • AWS Snapshot

A snapshot in EBS is a point-in-time copy of an EBS volume. It can be used to create a new EBS volume or restore an existing one. EBS Snapshots are incremental, that means after the first snapshot only the blocks that have been changed will be stored in new snapshots.

  • AWS FSx

Amazon FSx is a fully managed file storage service that makes it easy to set up and operate file systems in the AWS Cloud. It provides a simple, scalable, and fully managed file storage accessible over the Network File System (NFS) and Server Message Block (SMB) protocols.

  • Amazon RDS (Relational Database Service)

Amazon RDS is a relational database service that makes it easy to set up, operate, and scale a relational database in the cloud. RDS takes care of tasks such as backups, software patching, automatic failure detection, and recovery.

  • Amazon Aurora

Amazon Aurora is a relational database service that is compatible with MySQL and PostgreSQL. It is designed to be highly available, scalable, and fault-tolerant, with features such as automatic failover and self-healing storage.

  • Amazon DynamoDB

Amazon DynamoDB is a fully managed NoSQL database service that provides fast and predictable performance with seamless scalability. It provides features such as automatic and on-demand backups, in-memory caching, and encryption at rest.

  • Amazon CloudFront

Amazon CloudFront is a content delivery network (CDN) service that securely delivers data, videos, applications, and APIs to customers globally with low latency, high transfer speeds, and secure connections.

  • Amazon Route 53

Amazon Route 53 is a highly available and scalable Domain Name System (DNS) web service. It allows you to route end users to Internet applications by translating domain names to IP addresses and also providing health checking and traffic management capabilities

One of the significant advantages of using AWS is its scalability. AWS allows businesses to easily scale their cloud resources up or down as needed, ensuring that their websites can handle increased traffic and demand without experiencing downtime or performance issues.

Should you buy AWS services?

When considering AWS for web hosting, it’s important to evaluate your specific business needs, budget, and technical expertise to determine if AWS is the best fit for you.

AWS for web hosting

AWS offers highly scalable and reliable web hosting solutions, but the costs can quickly add up and it may require a certain level of technical expertise to set up and manage.

However, you can buy managed AWS cloud hosting services from ZNetLive which can help you smoothly migrate your applications and infrastructure to the AWS cloud. In addition to providing initial setup and migration services, ZNetLive can also offer ongoing support and optimization services to help you get the most out of your AWS investment.

Are you ready to make the move? Connect with our sales team via [email protected] .

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About author
Priyanka Dadhich – a content writer, can usually be found reading books. She likes to write about technology, healthcare, travel and fashion. Priyanka loves coffee and listens to music in her free time. She spends her free time with her family.
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