Amazon is already dominating the book industry. It has driven Borders out of business and has transformed the world of publishing. Now it has plans to create a completely new business.
Reuters reports that Amazon is now carving out a new business in cloud computing through Amazon Web Services which started out five years ago selling computing power and data storage to emerging technology companies, blogs and websites and now boasts such customers as the US Department of State, Siemens, Pfizer and Nasdaq.
AWS is still only a small part of Amazon and the company does not disclose its earnings. But with that rate of growth, it could well overtake the core business within a few years.
The strategy makes perfect sense. Amazon needs more firepower to deal with its two emerging rivals Google and Apple. Google has a new push to add movies and books to its Android mobile-app marketplace and Apple's iCloud will allow Apple to take on Amazon in the market for online movies, TV shows and other digital content. Amazon's push into computing is part of its strategy against Google and Apple.
no comment untill now