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Amazon's Jeff Bezos extols pay-as-you-use technology

30 Nov 2012
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LAS VEGAS: Amazon chief executive and founder Jeff Bezos took the stage Thursday to espouse the benefits of the Amazon Web Services cloud computing business approach, promising to continue delivering its model of high-volume, low-margin pricing.

Bezos said that the AWS approach was similar to the company's strategy with its Kindle tablet line. By selling the product at very little mark-up over production costs, the company is looking to make profits by getting the device to as many users as possible and encouraging smaller purchases over time.

"We make money when people use the device, not when they buy the device," Bezos said.

"If I make money when you buy the device, but you put it in your desk and do not use it, then Amazon does not deserve to make money. AWS is very similar, because its a pay-as-you-go service."

The company is also committing to maintain its business strategy in the coming years. Bezos said that maintaining its pricing structure and long-term approach would be the foundation of AWS for the next decade.

"It is impossible to imagine a future 10 years from now where a customer comes up to me and says 'Jeff, I love Amazon, I just wish it was more expensive," Bezos mused.

"We know the energy we put into it today will still be paying dividends for our customers 10 years from now."

Another key component of AWS will be maintaining the agility and ease of deployment for AWS. Bezos suggested that the ability to easily set up and test new platforms would help to speed innovation across the enterprise space.

The Amazon founder said that the company hopes to spread a "willingness to fail" belief amongst firms in which trial and experimentation is encouraged. Bezos noted that such an approach has helped Amazon become the technology titan it is today.

"If you do something in a new way, people are going to initially misunderstand it relative to the traditional way," Bezos said.

"If you never want to be criticised, don't do anything new."

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Shaun Nichols

Shaun Nichols is the US correspondent for He has been with the company since 2006, originally joining as a news intern at the site's San Francisco offices.

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