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Amazon Growth: Boost for Rackable?
The Amazon (AMZN) web services business has exceeded the surplus capacity of the company's retail infrastructure - which is likely good news for Rackable (RACK).
Rich Miller
April 22, 2008
1 Min Read
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I was reading Wired's feature about Amazon Web Services over the weekend, and was struck by the same paragraph that grabbed Nick Carr's attention:
And the idea that AWS is mostly about wringing extra bucks (especially off-season) out of Amazon's data centers? "We've far exceeded the excess capacity of our internal system," (Amazon's Andy) Jassy says. "That ship sailed 18 months ago." For a company at which operational data is a state secret, that's a telling detail: AWS is now big enough to be piling up its own silicon.
According to Amazon (AMZN), up to 10,000 new developers are signing up monthly. Given Jassy's statement that AWS now requires its own servers, that growth is bound to be good news for Rackable (RACK). Amazon is one of Rackable's four largest customers - along with Microsoft (MSFT), Yahoo (YHOO) and Facebook - and the growth of Amazon's utility computing platform has been cited as boosting results at Rackable.
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