AWS Chief Says Amazon's Most Profitable Segment Is Just Getting Started
Most people (and many investors) still think of Amazon (NASDAQ: AMZN) as an e-commerce business because Amazon has become so ubiquitous with consumers. But what they may not be as aware of is that Amazon Web Services (AWS) has been the company's spark plug since 2006, generating cash to fund e-commerce and other projects, becoming Amazon's most profitable segment.
One person who does know is Amazon's head of AWS, Adam Selipsky. In a recent interview, he pointed out that there is a massive opportunity still ahead of AWS and that it can become a much bigger part of the company overall. Here is what investors need to know about what Selipsky had to say.
Amazon Web Services is a cloud platform, a collection of hardware and software that offers computing services like storage, servers, and networking for Amazon to use and for other enterprises to rent on a metered billing model that generates plenty of recurring revenue.AWS' clients can remotely access its services, removing the need to invest in setting up or maintaining a physical computing system. It's all done over the internet, so companies don't need to use servers or other equipment.
Source Fool.com
