Amazon is the leader in cloud computing services with its AWS offering.
Cloud services are the way Amazon can become profitable. So far, Amazon has chiefly relied on its online merchandising business to receive revenue. Only Amazon's online delivery business in the USA, however, is consistently profitable. The International online merchandising business of Amazon is losing money consistently and is cross-subsidized by Amazon's other business initiatives.
The cloud computing business can become a 1 trillion USD in revenues globally business in the next 10 years. And Amazon is achieving a circa 30 % margin on its AWS cloud computing offering.
Cloud computing is basically the future of computing. Many on premise at office and at home computing activities will move to the cloud. The cloud services are slowly building trust in companies and consumers. Not to mention that cloud services are very cost efficient.
Amazon, with its first mover advantage, has a huge edge in cloud services which the company is confidently monetizing.
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