You must have heard of Amazon in case you ever shopped online. But have you heard of AWS?
Several individuals come across these two names and would be wondering, Are these the same thing or How are they related or differentiated AWS vs Amazon?
Today, we will explore the world of AWS and Amazon, how the two collaborate, and why both of them are so relevant in our daily lives.
What Is Amazon?
Amazon began as a small Internet bookstore in 1994. With the passage of time, it has expanded to become the largest online store in the world.
It is now possible to purchase just about anything on Amazon, including books and toys, clothes, and groceries. The primary mission of Amazon is to make the process of shopping simple, quick, and entertaining for all. They aspire to be the customer-friendly company on earth.
How Does Amazon Work?
Amazon’s retail business is a mega-store that is never closed. Here’s how it works:
- Direct Sales: Amazon is a company that sells its products. They purchase products of firms and store them in large warehouses.
- Marketplace: Amazon allows other individuals and companies to sell their products as well. This implies you get more options to make when you are shopping.
- Prime Membership: With the help of Amazon Prime, you receive free shipping, films, music, and discounts.
- Physical Stores: Amazon has stores such as Whole Foods and Amazon Go, where you can go and make purchases.
Smart computers and robots are used to pack and ship your orders fast at Amazon. They have a massive warehouse and delivery trucks around the globe. Their site and app have special tools that will display the things you may like, making shopping even easier.
What is AWS?
AWS is an abbreviation of Amazon Web Services. It may be a bit cheesy but it is quite cool. AWS is the cloud that is used to run the internet. Whenever you watch a film on the Internet, play a game, or use an application, AWS is likely working behind the scenes.
How did AWS start?
Amazon created AWS in 2006. Initially, Amazon had to have a superior method of managing its own site. They created great computers and intelligent software to assist. Then they knew that other companies wanted the same. Therefore, they began to provide these tools to all. That’s how AWS was born
What Does AWS Do?
AWS provides individuals and organizations with the ability to use computers, save data, and execute applications without the need to purchase their own computers. Here are some things AWS does:
- Stores Data: AWS preserves photos, videos, and files in the cloud.
- Elastic Apps: AWS enables companies to operate websites and apps, thus eliminating the need to have their own servers.
- Helps Large Organizations: AWS is used by Netflix, NASA, and even schools to conduct their work.
- Grows with You: In case more customers are attracted to a company, AWS can provide them with additional computer power immediately.
AWS is such an internet giant toolbox. It contains more than 200 various tools, including storage and databases, for machine learning and security.
What Is the Relationship between AWS and Amazon?
AWS is an Amazon company that functions as an independent company. Consider Amazon as a parent and AWS as a very intelligent child. AWS assists Amazon to earn substantial money, even more than selling toys or books in some cases.
- Subsidiary: AWS is a subsidiary of Amazon. This is to say that Amazon is the owner of AWS, although AWS has its leaders and teams.
- Various Occupations: Amazon is concerned with shopping and the sale of things. AWS specializes in technology and computer assistance to other companies.
AWS vs Amazon: Who Makes More?
How big each part is, we will see by looking at some numbers.
Amazon Retail
2024 Revenue: $530.4billion (530.4billion shopping)
Primary role: Selling goods to individuals everywhere around the globe.
Profit: Retail is very profitable, although due to warehouses, delivery, and personnel, the expenses are high.
AWS
2024 Revenue: $107.6 billion (smaller than retail, however, enormous)
Profit: AWS achieves higher profit than retail, although with less revenue. By 2024, which is only 17 percent of the revenue, contributed half the total profit of Amazon.
Why? AWS does not need to purchase and deliver goods. It markets computer power, which is cheaper to operate and earns more revenue.
Why Is AWS So Important?
The hidden platform that drives not only Amazon, but a good part of the internet as well is AWS. Here’s why it matters:
- Support Other Businesses: Small companies and larger companies, including Netflix, rely on AWS to operate their applications and websites.
- Innovation: AWS allows individuals to experiment with new concepts without having to spend a lot of money on computers.
- Growth: Amazon can use the profits of AWS to invest in new things, such as faster shipping or new stores.
Amazon’s Retail Power
The most well-known aspect of Amazon is its retail portion. It is where you take yourself to shop for gifts, groceries, or even a new bike. The following is what makes the retail business of Amazon special:
- Huge Selection: Millions of products all under a single roof.
- Quick Execution: Prime offers one-day delivery.
- Smart Shopping: Amazon operates on data in order to present you with what you may like, which makes the shopping activity enjoyable and effortless.
- Marketplace: Amazon provides you with a larger selection and a lower price by allowing other vendors to participate.
Wrap-Up
Amazon vs AWS are the same. Amazon simplifies the process of shopping for all, and AWS does the technological processes in the background. Although they have different things to do, they collaborate to make the world better for millions of people and businesses across the world.
The next time you place an order with a toy or stream a movie, keep in mind: it is happening because of the efforts of Amazon and AWS. They might not all be the same work, but as a team, they define how we shop, play, and even have to be together daily.