Amazon’s productivity suffered a terrible roller-coaster ride, and it needs help to find its balance. Last year, Amazon Web Service registered sales of approximately $2 billion, whereas this year the amount seemed to rise to about $3 billion. The income was valued at about one billion dollars, and the profit was measured at $821 million in comparison to the one which registered $428 million for 2015.
It is incredible how Amazon Web Services managed to increase its profits at an unbelievable rate. Their productivity surpassed companies like Microsoft and Google. The results indicate an outstanding request from various enterprises and businesses that needed Amazon’s services.
Darin Manney, the spokesman for Amazon, argued that the income earned by the corporation will determine customers to forget about hybrid environments and choose the help of Amazon. A hybrid environment processes part of the workloads from the user’s info center, some of them being located on infrastructures like AWS which are publicly shared.
Amazon is planning to develop new center facilities in other geographical areas to be able to help even more customers. This quarter, they have built a new data center in Ohio. As many big companies do, Amazon also prefers running their business closer to their users.
There were situations which required that personal data about customers should not be made public but kept protected. Thus, developed companies like Microsoft, IBM, and Amazon designed a very safe cloud center in Germany. There the rigorous laws are prone to secure any data.
Brian Olsavsky, the chief financial officer of AWS, has claimed that this company usually develops plans of price reductions. He also stated that their entire business is based on this premise, trying to attract more customers. They not only lower the prices of their devices and services but also create new cheaper devices meant to compete with their opponents.
This company was launched ten years ago. They managed to control this industry from the beginning because they applied a smart policy. Amazon’s customers who rented or bought computing capacity, they needed to pay only for the use of it, not having an established monthly fee. This was the reason why this company’s profit boosted from the start. They know how to gain more users.
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