Why Amazon keeps getting Stronger

Because Amazon Web Services keeps getting bigger

When Chris Pinkham and Benjamin Black sowed the seeds for Amazon Web Services by presenting a paper in 2003, not even in their wildest dreams would they have thought their idea would grow into a thirty billion-dollar business in sixteen years.

Amazon operates three business segments. Two retail units, Amazon North America and Amazon International and one technology unit, Amazon Web Services, also known as AWS that sells Cloud infrastructure and other web based technology services.

It’s not so much the money that’s making a difference for Amazon as it is the confidence of having a highly profitable business unit. Amazon the retailer will cease to be the aggressive, ever-expanding, innovative retailer we know without the backend support offered by its technology unit.

Though Amazon launched Web Services in 2006, it wasn’t until the first quarter of 2015 that the company felt it necessary to report Amazon Web Services revenues as a separate line item.

We don’t have data to assess the quantitative impact of AWS on Amazon’s retail units in its early days. But even today…