If you've sat through a meeting where someone threw around terms like "EC2 instances," "S3 buckets," and "Lambda functions" while you nodded along pretending to understand — you're not alone.
AWS (Amazon Web Services) has become the backbone of modern business technology. But most explanations of what it actually does are written by engineers, for engineers. That's a problem when you're the one making decisions about your company's technology infrastructure.
So let's fix that. Here's what AWS actually is, explained in language that doesn't require a computer science degree.
What AWS actually is (and isn't)
At its core, AWS is renting computers. That's it.
Instead of buying servers, setting them up in a closet (or a data center), hiring people to maintain them, and replacing them when they break — you rent computing power from Amazon. They own the hardware. They maintain it. They keep it running. You just use it.
Think of it like the difference between owning a car and using Uber. With your own car, you deal with insurance, maintenance, parking, depreciation. With Uber, you just get from A to B and pay for what you use.
AWS is not:
- A single product (it's hundreds of services)
- Just for tech companies (most businesses of every type use it now)
- Complicated to use (it can be, but it doesn't have to be)
- Only for huge enterprises (it scales down just as well as it scales up)
AWS is:
- Infrastructure you rent instead of own
- Services that handle common technology needs
- Available instantly, without long procurement cycles
- Billed based on what you actually use
The core services, explained simply
AWS has over 200 different services. You don't need to know about all of them. Here are the ones that matter most for growing businesses:
EC2 — Computers you rent
What it is: Virtual computers (servers) that run in Amazon's data centers.
In plain English: Remember when your IT person said you needed a new server? With EC2, instead of buying hardware and waiting weeks for delivery, you can spin up a new computer in minutes. Need more power? Make it bigger. Need less? Make it smaller. Done for the month? Turn it off.
Why it matters: No more guessing how much server capacity you need. No more buying expensive hardware that sits idle. No more panic when traffic spikes and your servers crash.
S3 — Files, stored forever
What it is: Storage for files of any type and any size.
In plain English: Think of it as an infinitely large, incredibly reliable hard drive that you access over the internet. Documents, images, backups, videos — anything digital can live in S3.
Why it matters: You never run out of space. Files are automatically backed up across multiple locations. You pay pennies per gigabyte. And unlike that external hard drive in someone's desk drawer, it won't fail at the worst possible moment.
RDS — Databases without the headaches
What it is: Managed database services (MySQL, PostgreSQL, and others).
In plain English: Databases are where your business data lives — customers, orders, inventory, everything. Traditionally, keeping a database running required specialized expertise. RDS handles all the maintenance, backups, and updates automatically.
Why it matters: Your data stays safe and available without needing a dedicated database administrator. Backups happen automatically. Updates happen without downtime.
Lambda — Code that runs itself
What it is: Run code without managing servers.
In plain English: Sometimes you need a computer to do something — process an order, resize an image, send a notification — but you don't need that computer running 24/7. Lambda lets you run code only when needed, and you only pay for the milliseconds it actually runs.
Why it matters: Perfect for automating tasks that would otherwise require someone to manually trigger them or expensive always-on servers. An invoice comes in? Lambda processes it. A customer signs up? Lambda sends the welcome email.
You don't need to understand how these services work technically. You just need to understand what problems they solve and that AWS handles the complexity.
Why growing businesses choose AWS
There are other cloud providers — Microsoft Azure, Google Cloud. They're all solid. But AWS has become the default choice for growing businesses for a few reasons:
Market leadership. AWS has been doing this longer than anyone else and has the most comprehensive set of services. Whatever you need to do, AWS probably has a service for it.
Ecosystem. Most technology consultants, developers, and tools know AWS. You're never locked into a single vendor for expertise.
Reliability. Amazon runs its own massive e-commerce business on AWS. They have strong incentives to keep it working.
Flexibility. You can start small — really small, like a few dollars a month — and scale to enterprise-level infrastructure without changing platforms.
Innovation pace. AWS releases new features and services constantly. Whatever the next technology trend is, AWS will probably support it first.
Common misconceptions, addressed
"AWS is only for tech companies."
Nope. Manufacturing companies, healthcare providers, financial services, retail, nonprofits — businesses of every type use AWS. If you use software, that software probably runs on AWS.
"AWS is too expensive."
It can be, if you don't manage it well. But for most growing businesses, AWS costs less than owning your own infrastructure. And you only pay for what you use — no more buying servers that sit idle at night or on weekends.
"AWS is too complicated for a small team."
It can be complex, but you don't have to use the complex parts. Many businesses run entirely on a handful of core services. And managed services mean you don't need specialized expertise to keep things running.
"We'll get locked in and never be able to leave."
Some lock-in is real, but it's manageable. The core services (computing, storage, databases) use standard technologies that can run elsewhere. The key is making smart architectural decisions from the start.
"We're too small for AWS."
AWS serves customers from solo startups to the largest enterprises in the world. Many AWS customers start with bills under $100/month. There's no minimum size.
How to think about AWS costs
AWS billing can feel confusing at first. Here's the mental model that helps:
You're paying for:
- Compute time (how long computers run)
- Storage (how much data you store)
- Data transfer (moving data in and out)
- Specific services (databases, specialized tools)
The key principles:
- Turn things off when you don't need them. Unlike owned servers, you can stop paying for AWS resources when they're not in use.
- Right-size your resources. Don't pay for a powerful computer when a smaller one would work.
- Use the right storage class. Frequently accessed files cost more to store than archived files. Use the appropriate tier.
- Set up billing alerts. AWS can notify you before costs exceed your expectations.
Rough cost expectations for a small business:
A typical small business running a web application, database, and file storage might spend:
- Minimal usage: $50-200/month
- Moderate traffic: $200-1,000/month
- Higher volume: $1,000-5,000/month
These are rough ranges — actual costs depend on your specific usage. But the point is: cloud infrastructure doesn't have to break the bank.
Always start with AWS's free tier. Many services are free for the first year or up to certain usage levels. It's a great way to experiment without commitment.
What this means for your business
If you're still running on local servers, old hardware, or cobbled-together hosting:
You're probably paying more than you need to. Between hardware depreciation, maintenance, IT time, and energy costs, owned infrastructure is expensive — even if it doesn't feel like it because the costs are spread across different budgets.
You're limiting your options. Modern software increasingly assumes cloud infrastructure. The best tools, the latest features, the most capable integrations — they're all built for the cloud.
You're carrying unnecessary risk. Hardware fails. Data centers flood. IT people quit. AWS eliminates entire categories of risk that you might not even realize you're carrying.
Making the switch isn't trivial — it requires planning and expertise — but for most growing businesses, it's not a question of whether to move to AWS, but when.
Next steps
If you're considering AWS for your business:
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Audit your current infrastructure. What are you running today? What problems are you experiencing? What's it actually costing you?
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Identify a starting point. You don't have to move everything at once. Many businesses start by moving backups to S3, or running a new project on AWS while keeping existing systems in place.
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Get expert help. AWS is powerful, but the wrong architecture can cost you money and create problems. It's worth investing in guidance from someone who's done it before.
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Start small, learn, scale. Cloud migrations are marathons, not sprints. Build confidence with smaller wins before tackling critical systems.
The cloud isn't the future — it's the present. And AWS is how most businesses get there.
Entvas Editorial Team
Helping businesses make informed decisions
