Amazon cloud has 1 million users and is near $10 billion in annual sales

Amazon CEO Jeff Bezos. (credit: Dan Farber)

Amazon Web Services (AWS) will become a $10 billion business this year, Amazon CEO Jeff Bezos said in a letter to shareholders this week.

While Amazon as a whole “became the fastest company ever to reach $100 billion in annual sales” in 2015, Amazon Web Services will hit the $10 billion mark “at a pace even faster than Amazon achieved that milestone,” Bezos wrote. AWS is used by more than 1 million people from “organizations of every size across nearly every industry,” he wrote.

AWS launched in March 2006 with the Simple Storage Service (S3). It expanded with the Elastic Compute Cloud (EC2) a few months later, letting customers rent virtual machines over the Internet. The service allowed developers to obtain computing capacity on demand without having to operate their own servers, and over the years, many startups have built online businesses with Amazon’s data centers and services providing the back-end infrastructure. It’s not just small companies relying on Amazon, though, as big names like Adobe, Capital One, GE, MLB Advanced Media, Netflix, and Pinterest use the online platform.