Amazon approaches all business endeavors by building the best platform possible and then offering that operational platform to its “partners” to share in the enterprise. That is, other businesses become “partners” who choose to partake in Amazon’s operations rather than building their own.
That has been true of the Amazon retail presence, where AM first made their sales platform an enviable vehicle for selling goods and then made the platform available to a wide range of businesses, so that they, too, could sell their goods as AM vendors. Which, of course, has allowed the AM web retail presence to expand exponentially – a brilliant move. The same is also now true of Amazon’s hugely successful cloud business where “partners” can use Amazon’s web services rather than building their own servers and software. The web-services unit has become the company’s cash cow, providing 73% of its operating income, or $1.4 billion annually. As with the retail unit, partners use the web cloud for their products and business enterprises, but also sometimes find themselves in competition with Amazon and its enterprises. It’s the name of the game, as far as Amazon is concerned – and one that, so far, Amazon’s partners are taking with a grain of salt. It seems to be making almost everyone involved huge quantities of money. The American way – free enterprise; freedom of competition.