Categories Technology, U.S. Markets News

Amazon Web Services is becoming a force to reckon with

Amazon.com Inc.’s (AMZN) Amazon Web Services (AWS) division is growing at a rapid pace and is on its way to becoming a force to reckon with. At the AWS re:Invent conference this week, the company announced a number of new offerings that not only strengthens its position in the cloud computing space but also pits it against major hardware providers.

At the event, Amazon unveiled AWS Outposts, a hardware product that will bring AWS services to clients on-premises. AWS Outposts come with computing offerings and storage software and are apt for customers who have concerns on public cloud usage or those who simply prefer to use their own facilities.

Amazon will do the delivery and installation for Outposts along with repair, maintenance as well as software updates. This service puts Amazon in direct competition with hardware providers like Cisco (CSCO) and Hewlett Packard Enterprise (HPE). It took Amazon a while to adopt this hybrid model, unlike its rival Microsoft (MSFT) who entered the space years ago.

Amazon also introduced two blockchain services and a variety of AI-based products at the conference. Along with its Outposts service, Amazon’s AWS unit will continue to increase its offerings in the cloud computing space.

Amazon Q3 2018 earnings: Record profit fails to impress Street as stock falls on sales and forecast miss

Amazon Web Services is already a market leader in cloud computing with several large customers. The new offerings are likely to boost its growth significantly and help win more customers going forward. During the third quarter of 2018, AWS generated $6.7 billion in sales, reflecting a 46% increase year-over-year.

Analyst Brent Thill of Jefferies projects AWS will deliver sales of $26 billion this year. He estimates this number will reach $71 billion by 2022, giving the unit a valuation of around $350 billion. Amazon has a market cap of $820 billion.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top