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Amazon Web Services Elastic Compute Cloud: Exploiting Its Business Value, Limitations & Potential Improvements

2409 words - 10 pages

Introduction
Amazon.com Inc, which took its name after the Amazon River, is one of the largest and widely known international electronic commerce company that was founded by John Bezos in July of 2014 in the United States (Byers, 2007). Amazon started as an online bookstore, but after the dot-com bubble that covered roughly a timeframe between 1997 and 2000 it had to be diversified as soon as possible in order to be able to compete and surpass all the other electronic commerce stores that made their appearance. The company begun by selling physical products such as DVDs, CDs, MP3 downloads and streaming, video games, electronics, jewelry, clothes and even food. In addition to all these, the ...view middle of the document...

Amazon Elastic Compute Cloud
According to Amazon, the bandwidth for Amazon Elastic Compute Cloud (by taking in consideration the Amazon S3 as well) has exceeded the bandwidth of all Amazon's global websites. But, what is exactly Amazon EC2? "Amazon EC2 is a cloud infrastructure that provides computing instances that can be scalable in terms of computing power and memory, flexible by providing the option to host applications on multiple different platforms, and secure due to a tightly coupled multi-tenant architecture" (Janssen, 2014). In much more simpler words, Amazon Elastic Compute Cloud (EC2) gives users the ability to rent virtual computers in order to "run" their own software applications, and depending their immediate processing needs they only have to pay for what they use.
As we thoroughly discussed in class the components that define an information system, Amazon EC2 as well is as any other information system and it is not consisted only by the hardware and software such as central process units, graphics cards, boards and circuits, operating systems and storage units that are need in order to be functional. Furthermore, besides all the technological components, Amazon EC2 is consisted by people (Amazon’s employees and consumers) and other inputs/outputs that work together with coherence and are involved in a procedure that uses raw data and transforms them into useful information.

Amazon Elastic Compute Cloud Analysis
Amazon’s business value is derived through the success of its EC2 services and in the long run these services have established a great health and the well-being of the company, since 2006 where the company released for the first time its Web Services and became a worldwide cloud leader since then (Butler, 2013).
Amazon EC2 Business Value
Amazon’s EC2 business value expands the general concept of value for a company beyond its economic growth value and it’s identified with other forms of value such as channel and alliance partner, employee and customer value. The main concepts of how Amazon derives value from its Elastic Compute Cloud Web Services are identified and explained below.
Flexible Cloud Hosting Services
To begin with, Amazon offers its users the choice to choose from multiple instance types, operating systems and software packages. The multiple instance types are consisted by virtual machines that each one of them functions as a private virtual server and users have the ability to specify the number of the virtual servers that is required by their job and either pay per hour or reserve them with one-time payment and receive discounts for each hour of usage. In addition, Amazon EC2 enables the flexibility to select a custom configuration of CPU, instance storage, GPU and memory that is the optimal requirements for the customer’s choice. For instance, I had the personal experience to use Amazon EC2 during my undergraduate studies for an algorithm benchmark and after a careful evaluation of all the possible...

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