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Chapter 226 The Future Has Come
After listening to Li Cheng's words, Guo Yuan suddenly realized that for a commercial company, the most effective business driving force is his own use, and the demand derived from the existing business is often the most reliable and has the most application scenarios of.

No wonder Amazon's cloud computing can do it.

It’s just that Guo Yuan is not very clear about Amazon’s underlying architecture, so he asked Li Cheng, “Brother Li, what is the underlying architecture of Amazon’s cloud computing?”

"To talk about the underlying architecture, we have to start with the underlying logic of Amazon Cloud Technology.

All IT infrastructure in the underlying logic of Amazon Cloud Technology can be divided into the smallest atomic unit.

Programmers can freely choose these units to build their own products, and personnel used within the enterprise can also use them to help provide services and provide this cloud service.

Amazon's customer chief technology once said that Amazon cloud technology is Lego in reality.

Every technical point of Amazon cloud computing is a small building block, and all developers need to do is to build the building blocks into what they want.

This is an unprecedented business model, using the increasingly mature network infrastructure in the world to migrate the surplus IT resources within Amazon to the Internet and open it up for more customers to purchase and use.

For customers, they definitely need to use IT systems and Internet services to build the underlying system, but each company needs to purchase a lot of hardware to repeatedly build the underlying system, which is obviously a waste of resources.

The reason why Penguins seem bloated and inefficient is because they spend half of their time dealing with basic technical issues.

And Amazon cloud technology can enable many companies to avoid the need to solve basic technical problems and the repetitive work of building blocks, and can spend costs on more differentiated services and functions.

To put it more bluntly, a certain game of Penguin is not optimized well, and the game interface keeps getting stuck. This is a basic technical problem. If you use cloud computing, you can replace the interface you made yourself with the interface that has been prepared by other servers. The underlying stuck interface to optimize this problem. "

Hearing this, Guo Yuan has basically figured out how far Amazon has achieved in cloud computing.

The essence of cloud services is to use resource optimization to bring global innovation, and it is the progress of business models after technical capabilities reach a certain level.

After Amazon's cloud technology entered the market, a large number of cloud service companies also adopted similar product architectures. It infrastructure atomization treatment has become the guiding ideology in the field of cloud technology.

Precisely because it has always adhered to this guiding ideology, Amazon Cloud Technology has maintained a market share of 15% after 40.8 years, ranking first in the industry.

"Brother Li, it should cost a lot of money to engage in cloud services?" Guo Yuan asked.

"Sure! Cloud service is a very asset-heavy industry.

Cloud services require the establishment of a data center, which is a huge expense in the early stage. Just supporting assets includes a series of expenses such as servers, power equipment, and temperature control equipment. In addition, field operation and maintenance and network costs are a steady stream of expenses.

Moreover, if cloud service providers need to develop on a large scale, they also need to set up data centers in different places to allow users to experience faster, and even set up multiple institutions in the same region, which can be said to be very expensive upfront.

But I feel that our boss should not be short of money. The money he sent to Zero one battery is enough to complete all the construction of cloud services in China, and he should be richer. "

The corner of Guo Yuan’s mouth twitched when he heard this. What Li Cheng said, he paid 41 billion yuan for the Zero one battery. 41 billion yuan should be enough to build a fab, let alone support the construction of cloud services in China. up.

Moreover, for things like cloud services, Guo Yuan feels that the domestic market is a bit too crowded, and it is not easy to get ahead.

Li Cheng seemed to see Guo Yuan's thoughts, he said with a smile: "Brother Guo, have you ever heard of the flywheel effect?"

Guo Yuan was taken aback when he heard the words, and then suddenly realized.

The flywheel effect mentioned by Li Cheng is simply that in order to turn the stationary flywheel, it takes a lot of effort to push it at first, but as the flywheel turns faster and faster, due to the existence of inertia, the more effort is required Smaller and smaller, only a small amount of steady force is required to keep the flywheel going fast.

Li Cheng mentioned that the flywheel effect on cloud services means investing a lot of money in the early stage of the business and building a good infrastructure. In the later stage, only stable operations are needed to achieve business growth.

"Brother Li, Amazon Cloud Technology uses the flywheel effect to drive business growth?" Guo Yuan continued to ask.

"That's right, Amazon Cloud Technology relies on the flywheel effect to promote the company's development, and now Amazon Cloud Computing has become popular, and they adhere to a set of business logic of low price plus huge volume plus Weibo profits.

From the launch period in 2006 to May 2020, Amazon Cloud Technology has taken the initiative to cut prices 5 times, achieving the ultimate low-cost strategy.

This is because the flywheel effect of Amazon cloud technology follows such a set of models - larger revenue scale, more optimized cost structure, lower prices and better user experience.

With a larger revenue scale, although a large amount of investment is required to drive this model in the early stage, after the flywheel effect starts to take effect, there will be rolling growth in the later stage.

In 2020, there is a data that shows that if Amazon Cloud Technology is regarded as a separate technology company, then it is an Internet company with a global revenue of more than 10 billion U.S. dollars, and it is the second Internet company in terms of revenue growth.

From 2014 to 2019, Amazon Cloud Technology achieved an 8-fold increase.

Not only is it a global leader, but it has also become an exponential growth business miracle and a cash cow of Axon.

Although its revenue only accounts for 12% of Amazon's total revenue, it accounts for 2020% of the company's $229 billion pre-tax profit in 59 in terms of profit. Today's Amazon cloud technology global market share still exceeds 40%, which is also because of this. "

At this point, Guo Yuan fully understands Li Cheng's thoughts. Li Cheng just quoted a sentence from science fiction writer William Gibson: the future has arrived, but it is not evenly distributed.

In a sense, cloud computing is solving the problem of uneven distribution, which is the trend of the times.

At the same time, with the help of the flywheel effect, the development space and profit space of cloud computing are also huge.

Not to mention that there is such a strong artificial intelligence as 01. Relying on 01 can better coordinate this part of the powerful computing power and make the flywheel spin faster.

No matter from which point of view, future technology should put cloud computing in a more important position.

However, Future Technology did not invest in this area, but focused on virtual reality technology.

Because of this, Li Cheng said that he couldn't understand the boss.

(End of this chapter)