|Microsoft Intelligent Cloud||$60B|
AWS history is quite interesting. Indeed, in the early 2000s, Amazon was trying to transition from e-commerce to a platform.
That is where AWS came about.
As AWS CEO Andy Jassy explained on Tech Crunch:
“In retrospect, it seems fairly obvious, but at the time, I don’t think we had ever really internalized that,”
Moreover, he continued:
“So very quietly around 2000, we became a services company with really no fanfare.”
As Tech Crunch reports:
“What you may not know is that the roots for the idea of AWS go back to the 2000 timeframe when Amazon was a far different company than it is today — simply an e-commerce company struggling with scale problems. Those issues forced the company to build some solid internal systems to deal with the hyper growth it was experiencing — and that laid the foundation for what would become AWS.”
Ever since, AWS has scaled to become an over $62 billion turnover company with incredible profitability.
And the thing is, most of Amazon’s e-commerce profitability, as of 2022, depends on AWS.
In fact, while by 2021, Amazon, the e-commerce company, was still profitable without AWS. By September 2022, it turned out that Amazon e-commerce without AWS would be reporting huge net losses.
In other words, if you were to remove AWS from Amazon, the company’s value would be reduced in less than half!
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