Thread: Why e-books?
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Old 10-30-2016, 08:21 AM   #358
kacir
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Device: PocketBook 360, before it was Sony Reader, cassiopeia A-20
Quote:
Originally Posted by ratinox View Post
Amazon operates 38 data centers with between 50K and 80K servers per DC. Each data center is rated at 25-30MWh, or about 1045MWh world-wide.

According to a 2012 Morgan Stanley estimate (dated, I know, but it's what I can find), Kindle accounts for 11% of Amazon's total revenue but 23% of its operating profit. I'll split that and say 17% of Amazon's server capacity is dedicated to Kindle books. Hm. That seems high to me so cut that in about half and say that 10% of Amazon's total server capacity is dedicated to servicing Kindle sales.
Have a look at the AWS.
Amazon Web Services.
Amazon is one of biggest providers of on-line data/computing/network services. You can rent a [virtual] server and and host a web site of any size, or run a huge database application or build a supercomputer "in the cloud" and crunch massive amount of data. And you only pay for the processing power and bandwidth you need to use at the moment.
Many big and small companies outsource their server services. At this moment this is bigger business for Amazon than e-books.
Even you personally can rent their server as a backup media for your e-book and photo collection for a very reasonable $0.007(**) per GB / month. And this is different level of reliability than Dropbox or similar services.

They have developed their data centers for internal use - providing media, running the biggest web store ... And now they sell it.
https://www.cnet.com/news/amazon-say...lion-business/
http://time.com/4084897/amazon-amzn-aws/

So, only a very small fraction of their servers is used to host Kindle ebooks.

(**) this price has many caveats. Study their pricing and conditions carefully.
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