Amazon owns Amazon Web Services, the cloud-computing division commonly abbreviated as AWS. AWS provides computing power, storage, databases, networking, and other online services to organizations worldwide.
Amazon launched AWS services in the mid-2000s after developing infrastructure to support its own fast-growing retail operation. The division allowed outside customers to rent technology resources instead of buying and maintaining all the necessary hardware themselves. This pay-as-you-go model helped popularize cloud computing.
Amazon began as an online bookstore founded by Jeff Bezos in 1994, but it expanded into retail, logistics, entertainment, devices, and cloud infrastructure. AWS became strategically important because its profitability and recurring business revenue complemented Amazon's lower-margin retail activities. The company is therefore often discussed both as an e-commerce leader and as a major technology company with a large market capitalization.