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Eric M.
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Hi Eric I have another one that I need some help on, please let me know if you have any thoughts on this one.
Submitted: 5 years ago.
Category: Homework
Expert:  Eric M. replied 5 years ago.
Hey! Thanks for requesting me, I'll be happy to take a look!
Customer: replied 5 years ago.

This is the assignment

Read the Case Study, Amazon: From Book Seller to Service Provider, at the end of Ch. 1 in the text.
o Write a 350- to 700-word paper, describing Amazon's strategy. Discuss whether the company is moving away from its core competency of being a leading online retailer. Discuss whether this is a wise strategy and address the following: Describe the components of the Amazon database and how Amazon uses each component. What data management issues may be encountered by Amazon? Describe the relationship among data, information, and knowledge, and how Amazon addresses each.

This is the case study:

THE BUSINESS PROBLEM Many analysts wonder if

Amazon ( will ever fulfill its original

promise to revolutionize retailing. Despite being the largest

online retailer with annual sales in excess of $10 billion,

Amazon has not shown the consistent profit growth that

investors have expected. In fact, profits have fallen, and the

company's operating margins (about 4.1 percent) are less

than Wal-Mart's (5.9 percent).

In addition, competition is increasing, with other Web

sites becoming preferred first stops on the Web. Google,

for one, has replaced retail sites such as Amazon as the

place where many people start their shopping (see Froogle

at Other Web sites such as My-

Space and YouTube (owned by Google) have become

prime places for many people to gather online and eventually


THE IT SOLUTIONS By 2007, Amazon had spent 12

years and some $2 billion building the infrastructure of

its online store, which is among the biggest and most reliable

in the world. However, Amazon uses only 10 percent

of its processing capacity at any one time. As a result, the

company has decided to provide a series of computing,

storage, and other services that make its infrastructure

available to companies and individuals to help them run

the technical and logistical parts of their businesses. Three

of these services are the Simple Storage Service (S3), the

Elastic Compute Cloud (EC2), and the Mechanical Turk.

With S3, Amazon charges 15 cents per gigabyte per

month for businesses to store data and applications on

Amazon disk drives. Through EC2, Amazon rents out

processing power, starting at 10 cents per hour for the

equivalent of one basic server.

The Mechanical Turk service combines processing

power with networks of real people who are paid to do

the kind of work that machines cannot do well, such

as recognizing inappropriate content in images or transcribing

audio. Companies post pieces of work onto the

Mechanical Turk and pay people online, for which Amazon

receives a 10 percent commission.

THE RESULTS Thousands of companies are using Amazon

services. For example, (

is an e-mail hosting company that maintains e-mail programs,

filters spam, and removes malicious software such

as viruses and worms from e-mail for clients. The company

uses S3 for storage, sending Amazon more than a

terabyte of data per week. To host the development effort

required to build and maintain its systems' interface to

S3, uses EC2. The company also uses EC2

for processing tasks related to storage backup.

states that Amazon cut its data backup costs by 75 percent


Another example is Startup company Powerset

(, which offers searches that use natural

language rather than stilted phrases and imprecise

keywords. This task requires large amounts of processing

capacity. Powerset uses S3 and EC2 to keep its costs

down, while handling the background work of reading,

processing, and indexing the vast number of Web pages

that underlie its search processes.

Since its debut, the Mechanical Turk has attracted thousands

of "Turkers" working for dozens of companies. One

company, Efficient Frontier (, uses the

service to analyze tens of thousands of search keywords to

see which ones best attract potential shoppers to particular

Web sites. Another company, Casting Words (www, uses Turkers to transcribe 10-minute

podcast segments, assemble them into full transcriptions,

and check the quality.


Identifying Information at Club IT 27

The jury is out on whether Amazon services will contribute

significantly to the company's botXXXXX XXXXXne. However,

these service offerings are a bid by Amazon to be a

leading player in the next wave of the Internet. Specifically,

Amazon is competing directly with Google, Microsoft, and

other giants to build a Web-based, global computing platform.

It remains to be seen if Amazon will be successful in

this endeavor.


Expert:  Eric M. replied 5 years ago.

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Customer: replied 5 years ago.
LOL I could not find it. I will open another link for new qestion yo can lock this one.