Of the few questions outsiders have about Seattle’s star startup ecosystem, the most common is: “Why haven’t Amazon and Microsoft done more for the area?” Microsoft deserves a post of its own, but the truth is that Amazon has had a bigger impact on startups than nearly any other company in the world.
The key words are Amazon Web Services.
Startups don’t require much to get off the ground these days, but among the top-five needs is solid hardware to build on. When Amazon introduced AWS in 2006, it simplified startup creation and vastly reduced the overhead startups need.
AWS’s impact shouldn’t be overstated, and cost reduction isn’t the only benefit. But AWS now powers roughly 1 percent of the Internet, with popular companies like Yelp and Foursquare running on top of the structure. It is one of the largest supercomputers ever created. And, if that’s not enough: Netflix relies on AWS.
If AWS didn’t exist, the startup world would be incredibly different. But despite so much of the Internet’s reliance on Amazon, the company is sometimes seen as the neglectful parent of Seattle. Continue reading →