The things about the Amazon Business model

Most of us are familiar with Amazon. Amazon is an e-commerce company in everything they do. They have developed all their expertise in full support of e-commerce. In fact, they now do e-commerce for many other businesses.

Amazon has existed in the e-commerce technology world since its inception. They think like a technology company and agile innovators, only innovative in everything they do, not just technology. They are not afraid to try new things and they can get things done quickly, thanks to the culture.

For years, the company focused on growth and expansion over profitability, earning complaints from investors. They are still focused on the future more than the present and that is why they are such good innovators. More recently, it’s done things that left many scratching their heads, such as the whole Amazon Web Services (AWS) effort, and even the Kindle effort and yet both have proven to be quite successful.

Consider the size and breadth of the Amazon enterprise in three ways, what they are building, what they are buying, and how they are partnering with others.

Amazon has brought almost 30 companies in thirty years. One of their most recent buys, ComiXology. ComiXology offers a well-designed app for buying and reading comic books from more than 75 publishers. It makes it easy to see new comics, which sell for the same price as in-store, and it is easy to buy back issues, too. There are also always comics on sale, including collections for a great price.

They partner to offer their e-commerce services to make other companies better at on-line business. Sometimes it is just providing the service, other times it is to combine products.

Amazon is very aware that information technology is at the heart of their most important core competencies.

Unless you work in technology or corporate logistics, you might not have known that Amazon was ahead of Google in the cloud business. Most consumers will have encountered the cloud in the form of services where Google is strong email (Gmail), document storage (Google Drive), and the like. But Amazon Web Services has for years been the front-runner in the business of renting computing power to companies.

To understand the scale of the war brewing between them, it helps to understand that what Amazon and Google are really contesting is who gets to eat a bigger portion of the total corporate information-technology pie. All the warehouses of servers that run the whole of the internet, all the software used by companies the world over, and all the other IT services companies hire others to provide, or which they provide internally.

Amazon Web Services (AWS) is a collection of remote computing services that together make up a cloud computing platform, offered over the Internet. The most central and well-known of these services are the simple storage service (S3) and the elastic compute cloud (EC2).

Prime Instant Video was launched in 2011 to provide customers streaming video on demand, analogous to books. The Amazon Studios team continues to invest heavily in original content and will compete in the new TV market of the future.

Not only is Fire TV the best way to watch Amazon’s video offerings, but it also embraces non-Amazon content services like Netflix, Hulu Plus, VEVO, WatchESPN, and many more. In addition to Prime Instant Video, Fire TV gives you instant access to over 200,000 movies and TV episodes available a la carte. As a bonus, Fire TV also lets you play high quality, inexpensive games on your living room TV.


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