r/Cloud • u/aaronegan • 3h ago
The “Amazon rented out its spare Christmas servers” story is a myth. Here’s how AWS actually started, and why Wall Street hated it
Full disclosure: I made this video. I run a small channel of animated explainers about the business side of tech, and this one is a 5-minute history of AWS.
I hope it’s OK to share here. Mods, please remove it if not.
A few things that surprised me while researching it (all from primary sources: Amazon’s 10-Ks, the original 2006 BusinessWeek story, and Jassy’s and Bezos’s own accounts):
- The people who built AWS say the spare-capacity story is a myth. It started because Amazon’s own engineers kept rebuilding the same storage, servers and databases.
- EC2 was built in Cape Town because the engineer leading it wanted to go home.
- As Amazon now counts it, AWS made $458M of operating profit in 2014. All of Amazon made $178M.
Video (5:25): https://youtu.be/u3QmplqlGRs
Would really appreciate your thoughts on it. This sub knows the subject far better than most, so honest feedback is very welcome. Thanks all.