Amazon owns AWS, the cloud-computing business that has helped make Amazon one of the world’s highest-valued public companies.
Amazon Web Services launched in 2006 and provides computing power, storage, databases, networking, and other services over the internet. Rather than requiring customers to build all their own data-center infrastructure, AWS lets organizations rent computing resources and scale them as needed.
AWS became a crucial part of Amazon’s financial story because its operating profits have often supported the company’s broader retail investments. Amazon’s market capitalization reflects investor expectations for the whole company, including online stores, advertising, logistics, devices, subscriptions, and AWS.
Amazon began as an online bookstore in 1994, founded by Jeff Bezos. Its transformation into a diversified technology and commerce company explains why it appears in market-cap rankings alongside software, semiconductor, and consumer-electronics giants.