Amazon operates Amazon Web Services, the cloud unit that helped make Amazon a mega-cap company.
Amazon Web Services, usually called AWS, provides computing power, storage, databases, networking, and other online services to businesses, governments, and developers. It began offering services publicly in 2006 and became one of Amazon’s most important profit engines.
Amazon started as an online bookstore in 1994 before expanding into a broad retail marketplace, logistics network, entertainment business, devices, and cloud computing. This diversification helped transform it from a niche internet retailer into one of the world’s most valuable public companies.
A common mix-up is to treat Amazon and AWS as separate publicly traded companies. AWS is a business segment owned by Amazon, so its results contribute to Amazon’s consolidated financial statements and market capitalization.