Amazon’s AMZN cloud computing arm, Amazon Web Services (AWS), is leaving no stone unturned to bolster presence in the cloud computing space through serviceportfolio expansion.
The move to make AWS IoT SiteWise generally available is a testament to the same. Notably, AWS IoT SiteWise is a managed service that seamlessly collects data from plant floor, and structures and labels it.
AWS with the new service strives to address the time and cost challenges in extracting data from several sensors and equipment across various locations.
The service helps industrial companies in reducing equipment costs by helping them in building application by analyzing industrial equipment data by generating real-time key performance indicators, which aid in making data-based decisions.
Further, it enables customers to compute industrial performance metrics and monitor operation across facilities, which in turn will aid in multi-site processing with the help of centralized data.
We note that SiteWise allows industrial companies to visualize and monitor all their equipment. This, in turn, will help in reducing production gaps by optimizing operations.
AWS Adoption Rate to Grow
We believe the abovementioned user-friendly features and benefits are likely to drive AWS’ momentum across industrial companies including manufacturers, energy utilities and food processors.
Notably, customers, which include Volkswagen Group, Bayer Crop Science, Pentair, Genie, TensorIoT and Softing Industrial have already started utilizing the AWS IoT SiteWise.
We believe growing customer momentum will help AWS in sustaining its dominant position in the cloud computing space.
Further, expanding clientele will continue to accelerate sales of AWS, which has become an integral part of Amazon. In first-quarter 2020, AWS generated $10.2 billion sales, accounting for 14% of Amazon’s net sales.
Wrapping Up
The company’s constant efforts toward strengtheningcloud offerings in this data-driven world holds promise and instills investor optimism in the stock.
Additionally, strengthening customer base and solid AWS portfolio are likely to continue providing AWS a competitive edge against Microsoft’s MSFT Azure, Alphabet’s GOOGL Google Cloud and International Business Machines’ IBM cloud division, IBM Cloud.
Per the latest Synergy Research Group report, Microsoft and Google acquired worldwide cloud market share of 18% and 8% in first-quarter 2020, respectively, while Amazon led with 32% share of the market.
Currently, Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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