Amazon Revolution
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- Date Submitted: 08/09/2011 11:05 PM
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Amazon Revolution
Renee Alva
XBIS/219
July 24, 2011
Caryl Rahn
Amazon Revolution
At one time Amazon was considered just that, the up and coming monster of retail that would be feared to monopolize the e-business world when it came to internet sales. However, the internet market has revolutionized faster than Amazon was able to adapt. Unlike Apple, Amazon has come up with a few solid ideas, but is losing the footrace in the retail-internet sales division.
Although Amazon has spent approximately 2 billion on infrastructure for it’s on- line stores, it has been utilizing only ten percent of it processing capacity at any given time (Rainer & Turban, 2009). Amazon has been losing profits even though it has sales over 10 billion and is considered one of the biggest on-line retailers in the world. Amazon had to figure out how to compete against other on-line retailers like Google. Actually, Google was the biggest problem. Google was forging ahead because of it ability to target more of the community via YouTube and MySpace (which Google owns). Google was attracting a larger audience because it was offer other desirable services besides shopping. Google was offering international communication amongst the general public, as well as the ability to shop, date, and check-out people world-wide. This is something Amazon could not compete with.
Therefore, they needed something else to generate profits from the infrastructure already built. Since they had plenty of processing power not being used, Amazon came-up with the following three services, they are: Simple Storage Service (S3), the
Elastic Compute Cloud (EC2), and the Mechanical Turk. Simple storage charges $3.00, and 15 cents per gigabyte per month per business to store data and/or applications on disk drives from Amazon. Via EC2, processing power is rented out for ten cents/ hour per one basic server. The Mechanical Turk allows the hiring of people by other companies to scan/access...
Renee Alva
XBIS/219
July 24, 2011
Caryl Rahn
Amazon Revolution
At one time Amazon was considered just that, the up and coming monster of retail that would be feared to monopolize the e-business world when it came to internet sales. However, the internet market has revolutionized faster than Amazon was able to adapt. Unlike Apple, Amazon has come up with a few solid ideas, but is losing the footrace in the retail-internet sales division.
Although Amazon has spent approximately 2 billion on infrastructure for it’s on- line stores, it has been utilizing only ten percent of it processing capacity at any given time (Rainer & Turban, 2009). Amazon has been losing profits even though it has sales over 10 billion and is considered one of the biggest on-line retailers in the world. Amazon had to figure out how to compete against other on-line retailers like Google. Actually, Google was the biggest problem. Google was forging ahead because of it ability to target more of the community via YouTube and MySpace (which Google owns). Google was attracting a larger audience because it was offer other desirable services besides shopping. Google was offering international communication amongst the general public, as well as the ability to shop, date, and check-out people world-wide. This is something Amazon could not compete with.
Therefore, they needed something else to generate profits from the infrastructure already built. Since they had plenty of processing power not being used, Amazon came-up with the following three services, they are: Simple Storage Service (S3), the
Elastic Compute Cloud (EC2), and the Mechanical Turk. Simple storage charges $3.00, and 15 cents per gigabyte per month per business to store data and/or applications on disk drives from Amazon. Via EC2, processing power is rented out for ten cents/ hour per one basic server. The Mechanical Turk allows the hiring of people by other companies to scan/access...