with amazon web service, you can pull amazon data feeds and other things. Its the simple way to say it.
This is inaccurate. AWS (Amazon Web Services) has nothing to do with the retail Amazon side. AWS provides cloud computing solutions. You can create and deploy virtually any popular O/S from their virtual machines. The advantage of this over traditional dedicated servers is that you create and terminate virtual servers as you need to scale up and scale down. You get billed by hours of usage so in a month, with their cheapest virtual server, it comes out to be roughly $75. I was actually at the AWS start up event they had in UCLA a few days ago. I hope this helped clarified what the AWS is.