Amazon’s S3 Losing Money

17 Apr

 From Yahoo News:

Amazon.com Inc.’s Web services business isn’t profitable, but it’s growing very rapidly and the company expects it to make money eventually, Chief Executive Officer Jeff Bezos said Monday.

Amazon Web Services, launched in 2004, provides hosted IT infrastructure services for developers in areas like storage and server computing. It is Amazon’s newest business and Bezos is convinced it will succeed because there is rising demand from companies large and small for offloading IT infrastructure work to a third party, Bezos said at the Web 2.0 Expo event in San Francisco.For example, S3, a hosted storage service, has grown exponentially, from having 800,000 objects stored in mid-2006 to over 5 billion today, Bezos said, the first time he has disclosed usage figures for the service.“Managing bandwidth, buying servers, negotiating with hosting companies: none of this stuff helps your idea be any better or gets your product faster to market,” said Bezos in a keynote speech during which he also answered questions from Tim O’Reilly, founder and CEO of O’Reilly Media Inc., one of the event’s organizers. 

http://news.yahoo.com/s/pcworld/20070417/tc_pcworld/130823;_ylt=AmqK.DrRLl0.07qFLkUOQmfMWM0F

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