"It makes sense for a lot of enterprises to operate in hybrid mode"

How have you managed to reach the bottom in terms of pricing?

We had to get really good at running cost-effective, reliable data centres because our retail business is a low-margin business. So we have a good sense of the real cost for building infrastructure software, buying hardware and running data centres. Software innovation, hardware innovation, utilisation improvements and infrastructure improvements... it's a long list of things we prioritised over the years to take cost down. Also, it was very clear that customers were being substantially overcharged. Customers should expect that we'll continue to lower prices over time.

Are larger enterprises averse to moving their data online?

If you look at the enterprise traction over the past four years, it is quite substantial, and every measurable vertical business segment is using AWS in a meaningful way now. In the public sector, too, we have built a substantial business. Companies that argue that only start-ups are going to use cloud are either doing so because they want to convince and trick people into thinking their enterprise won't use it, and/or they just haven't looked at the facts. Today, it makes sense for a lot of enterprises and public sector organisations to operate in hybrid mode because they have on-premise data centres, which they are not ready to retire yet.

How do you deal with security and privacy concerns around the usage of public cloud?

There are a number of capabilities and services on top of what has been provided over the past 30 years by professional on-premise technology providers for companies to further protect themselves. Because of the nature of what we do, we hire a lot more security people than any enterprise can afford to hire on its own. That means a lot more expertise than most on-premise CIOs.