Cloud is such an over used term it is hard for many to understand what exactly is the cloud. Amazon Web Services is many times equated to the cloud. But, that doesn't really help to explain what AWS is.
I was looking a presentation on amazon.com and here is a slide of Jeff Bezos's vision.
When Amazon.com started it sold books. Who in their right mind would build a business selling books? What Jeff did build was a bigger selection at a better price point and more convenient than his competition.
What is AWS? a bigger selection of IT services at a better price point (consume as you use vs. a license) and convenient to add into Amazon's infrastructure. With Amazon Prime, two day shipping is free. With AWS you pay for shipping , the transportation of bits into and out of AWS.
I think it is much easier to say AWS is the IT superstore.
AWS is building on amazon.com's business model.
And amazon.com's passion to innovate the customer experience is what is being used in AWS. How many IT vendors have a passion for customer service?
Consider what AWS is thinking up to fulfill this vision.