4 ways Amazon's cloud business has transformed the tech world in just 10 years

Amazon’s cloud computing powerhouse, Amazon Web Services, turned 10 years old today. When it launched back in 2006, no one thought it would change the computer industry, and our lives, the way it has.

Here’s a look at what things were like when AWS arrived in 2006 and how far they have come today.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

Today, Amazon Web Services is a lot more than just computers and storage for rent. You can still rent those, but you can also rent more than 70 more Amazon services including networking, database, analytics, software, and mobile.

Source: Amazon

Amazon's storage service, S3, holds trillions of objects and serves up millions of requests per second. Plus AWS customers use 143 million hours a month of services from 2,500 third-party software services.

Andy Jassy, senior vice president of Amazon Web Services

Source: Amazon

Overall, AWS is as big as its next four competitors combined and has data centres located in 12 geographic regions worldwide, with 5 more scheduled to open later this year.

2. In 2006, no one used the term 'cloud computing.' They called it 'grid computing' or 'utility computing' or 'outsourcing.' A year BEFORE Amazon launched AWS, Sun Microsystems launched its grid computing for $1/CPU hour or GB of storage and it was considered a radical idea and dirt cheap. But it didn't save the company.

Getty Images
Scott McNealy, cofounder and former CEO, Sun Microsystems

Now, everybody in tech knows what cloud computing is, and AWS is the undisputed leader. It's on track to be a $10 billion business for Amazon. Q4 2015 revenue for the AWS segment grew 70% to $2.4 billion (with a 29% operating margin), Amazon says.

Amazon CTO of AWS Werner Vogels

Source: Amazon (email)

In fact, cloud computing, as led by AWS, has had an enormous ripple affect. It has squeezed giant legacy IT players like IBM, HP and EMC and spurred the mobile computing revolution. Next it will support the Internet of Things and machine learning, where everyday objects become 'smart' and computer themselves learn to think.

Today, AWS has more than a 1 million active customers in 190 countries, including nearly 2,000 government agencies, 5,000 schools and over 17,500 nonprofits.

Getty Images

Source: Amazon

About two dozen large enterprises have decided to shut down their data centres and use AWS exclusively including Intuit, Juniper, AOL, and Netflix.

Source: Amazon

4. In 2006, Oracle billionaire and then-CEO Larry Ellison famously pooh-poohed cloud computing as nothing more than a fashionable buzzword.

Business Insider
Oracle executive chairman and CTO Larry Ellison

Source: Larry Ellison - What The Hell Is Cloud Computing?

Today, AWS offers several databases built by Amazon that compete with Oracle. One of them, Amazon RDS, has more than 100,000 active customers. A new one launched earlier this year, Aurora, is the fastest growing service in AWS history, Amazon says.

Matt Weinberger

Source: Amazon.

All told today, all of AWS database services are on track to be a billion-dollar business for Amazon, not including Amazon's own use of these services for its retail operations. These database services includes Amazon RDS, Amazon DynamoDB, Amazon Redshift, and Amazon ElastiCache.

Mario Tama / Getty Images
Jeff Bezos

Source: Amazon

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