Good introductory summary of why Amazon AWS is profitable:

  1. AWS adds new server capacity daily
  2. AWS uses redundancy to guard against down-time
  3. AWS builds its own custom servers
  4. AWS designs its own custom hardware and software
  5. Amazon seeks out advantageous locations for its hubs
  6. Amazon guards against over-growth

6 Things Amazon Can Teach us About How to Do Cloud Computing Correctly, By Brigg Patten