Amazon Operating Profit

• The majority portion of the Amazon’s operating profit come from its online retailer’s cloud division, amazon web services ( AWS ). 
• The AWS provides online services and tools which provide to software developer for running websites and applications. 
• The operating income of AWS at the ended 2020, was $13 billion ( 1300 crore dollar Indian rupees ). 
• The amazon reported net income of $21 billion for the year of 2021. 
• The Alibaba, Google, IBM, Microsoft and Oracle are also challenging the business of AWS. 
• The AWS is serving developers and end users with thousands of services. There are lots of new services comes from AWS. 
• The AWS revenue comes form the EC2 computing service.

EC2

• The EC2 is an oldest service of AWS and it generates majority of gross profit and operating profit. 
• The customers can lower their bills by reserving EC2 instances for future use. 
• The reserved instance can be as much as 75% cheaper than the on-demand instances.

Amazon Lambda service

• The lambda service creates thumbnail when person upload a new image or photo in social media network.

Storing date : S3 and EBS

• Customers use S3 to store image, photos, videos and other types of files.  The S3 has stored more than 100 trillion objects. 
• The gross margin of the S3 is in the range of 50 to 70%. 
• Moving of data into Amazon S3 is free but transferring a terabyte of data out of S3 can cost three times more than the monthly cost of storing terabyte in S3.

 

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Elastic Block Store ( EBS )

• The EBS can be attached to EC2 and hold data for them. 
• It provides storages volume for customers after delete data from EC2 services. 
• The gross margin of EBS stands between 60% to 70% said by Bhavan Suri, Co – head of technology equity research at William Blair.

Cloud Market Place

• The companies are buying software from other companies through AWS’ Market place. 
• The average listing fee by Amazon is 5% whereas Microsoft lowered its market place fee from 20% to 3% in the July 2020.