How does Amazon use cloud computing and virtual data centers?

Amazon first started making use of Cloud Computing as part of its business services back in 2006. The Amazon Elastic Compute Cloud form the integral part of Amazon Web Services, a cloud computing service operated by Amazon. The Elastic Compute Cloud, EC2, allows users to rent virtual computers to run their own computer applications.

Users can launch and terminate server instances, paying by the house for active servers that they rent. On their operating front, Amazon also uses cloud computing. This happened after the dot-com bubble.

Amazon modernized their data centers by increasing the efficiency on which computer networks were utilized. By introducing cloud computing into their operations, Amazon was able to increase its internal network efficiency. This led to the launch of Amazon Web Service in 2006.

Sources: http://cloudcomputing.sys-con.com/node/1692640 http://en.wikipedia.org/wiki/Amazon_Elastic_Compute_Cloud http://en.wikipedia.org/wiki/Cloud_computing.

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