Amazon web services Case Study Example | Topics and Well Written Essays - 250 words

Amazon web services - Case Study Example The biggest benefit of this strategy was its potency to attract a large number of customers and thus build a huge customer base for the company. Amazon believed that by building scale, it could lower the bandwidth and hardware costs in the long run. The demerit of this pricing model was that it did not guarantee a certain amount of revenue from any customer. Some of the AWS customers paid less than $1 to the company. The AWS services have been pretty successful and hold a lot of promise for the future. On the face of it, AWS appears to be a diversion from Amazon’s core business; however in reality this is not the case. Since inception, Amazon has invested heavily in technology and its core competencies lie in the back end operations. To that extent, AWS is a perfect fit for Amazon’s skill sets. Since AWS was a front runner in the ‘cloud’ services, Amazon derived the first-mover advantage as well. It is recommended that Amazon broadens the customer base for the AWS services. Till date the company has been primarily relying on developers. It needs to rope in corporate customers given the fact that other technology behemoths like Microsoft and IBM are developing similar