AWS vs Amazon – Difference Explained [2022 Comparison]

It seems like Amazon has quite a lot of companies associated with it. But what does this actually mean? For example, what are the main differences between AWS and Amazon? Are they run by the same people? Are they the same company?

Below, we answer all of these questions and more! So, be sure that you keep reading!

AWS vs Amazon

Amazon is an online marketplace where customers can buy various items, both physical and digital. Amazon Web Services (AWS), meanwhile, is a branch of Amazon that offers cloud computing platforms to customers on a paid subscription or membership basis. AWS is a subsidiary of Amazon that has its own CEO.

There’s a lot you should know about the differences between Amazon and AWS. And we explain everything in detail below!

Is AWS the Same as Amazon?

No, AWS is not the same as Amazon. While Amazon is an online marketplace that sells physical and digital goods to customers around the world, Amazon Web Services is a cloud computing platform service.

AWS offers cloud computing platform services to individuals, businesses (small and large), and even governments. They offer these services on a paid subscription or membership basis.

Amazon, in comparison, doesn’t offer content like this.

What Is Amazon Web Services?

Amazon Web Services offers a variety of different cloud computing services. For example, they offer services to allow customers to manage virtual private servers, help with app development, test apps through cloud services, manage and help with website development, and more.

AWS also offers training and certifications for developers, data scientists, and any builders looking to utilize AWS services.

Therefore, AWS offers quite a lot of services — all vastly different from anything that Amazon, an online marketplace, offers.

Is AWS Bigger Than Amazon?

AWS is a big subsidiary or branch of Amazon, though it’s not necessarily bigger than the online company. However, that’s not saying that AWS is some small company attached to it. It’s not!

In fact, AWS has proven to be one of the most — if not the most — lucrative component of Amazon’s success. AWS currently accounts for about 16% of Amazon’s total revenue, though signs point to this only increasing in the near future.

Though AWS has grown quite a lot under Amazon, and though it has brought in quite a lot of revenue, Amazon’s marketplace continues to be the biggest chunk of the company.

Is It Better to Work at AWS or Amazon?

Working at AWS has its benefits, as does working at Amazon. When it comes to which branch is better to work for, this often depends on each individual worker. For example, if you have a background as a data scientist, you might naturally enjoy working at AWS better.

Just as with any job, there are pros and cons to working at both AWS and Amazon. While AWS is a branch of Amazon, the company still does have its own CEO and working policies. However, Amazon is the parent company of AWS!

Is AWS More Profitable Than Amazon?

In 2022, AWS accounted for 16% of Amazon’s total revenue — up by 3% from 2021. Therefore, it’s not necessarily more profitable than Amazon. However, in some quarters, AWS has proven to be a huge component of Amazon’s overarching success.

For example, in early 2022, Amazon’s operating income during the first quarter was $3.67 billion. In comparison, AWS’s operating income for the quarter was $6.52 billion. Therefore, Amazon was able to perform remarkably well because of AWS’s beneficial quarter.

With this said, Amazon still remains more profitable than AWS, as a whole. But AWS is still growing and becoming a bigger component of Amazon’s success overall. In 2022, AWS grew by 37%.

While there are signs that AWS’s growth could be slowing down, the cloud company could still do remarkable well. If it does continue to do well in the near future, then it likely will remain a notable part of Amazon’s company.

AWS vs Amazon Revenue

Let’s compare yearly revenue between AWS and Amazon now. In 2021, AWS generated $62.2 billion in revenue. In comparison, Amazon generated $469.822 billion in revenue in the same year.

So, AWS is still a major part of Amazon and is one of the main reasons why Amazon does so well with each passing year. With this said, AWS also spends a lot of its revenue and often is only left with an operating income of about $18 billion.

AWS is still a pivotal component of Amazon — but it is not anywhere close to the success that Amazon has as a whole.

Conclusion

Amazon is an online marketplace that offers physical and digital products to customers. Amazon also has many branches and subsidiaries, such as AWS. AWS is a cloud computing company that offers its many services to individuals, businesses, and even governments for a paid subscription or membership deal.