Amazon Case Study 2

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Topics: Cloud computing
Amazon Case Study

1. What technology services does Amazon provide? What are the business advantages to Amazon and to subscribers of these services? What are the disadvantages to each? What kinds of businesses are likely to benefit from these services?

Amazon provides cloud utility computing, also known as on-demand computing when they introduced their services Simple Storage Service (S3) and Elastic Compute Cloud (EC2). With these two services, Amazon provides a pay-as-you-go model of computing capacity to businesses that want to pay only for what they use. Amazon can generate more revenue from other businesses by offering excess capacity to those that need it.

Amazon, like most companies, uses only a small portion of its total computing capacity at any one time. Its infrastructure is considered to be among the most robust in the world. Those who subscribe to Simple Storage Service, have full control of their spending by only paying for what they use and not having to purchase their own hardware and software. This saves a lot of money to small and medium-sized businesses because they do not have to invest in building their own infrastructure. Amazon’s services also eliminates the risk that building an infrastructure will take longer than expected which would cause delays to operations. Amazon’s Elastic Compute Cloud service allows businesses to utilize Amazon’s servers to compute tasks without having overhead costs. Both of Amazon’s services are reliable and provide minimal risks to subscribers.

There are not many disadvantages of using Amazon’s S3 and EC2 services. Companies may want to choose more established names in computing like IBM, Sun Microsystems and Hewlett-Packard. Amazon does not provide service level agreements for their services in which they claim to their subscribers of providing 99.9% availability. Businesses may want a peace of mind of having a service level agreement which guarantees the availability of services.

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