Back to top

Image: Bigstock

Amazon's (AMZN) AWS Boosts Customer Reach With Latest Move

Read MoreHide Full Article

Amazon’s (AMZN - Free Report) cloud division Amazon Web Services (“AWS”) has made its new storage service called Amazon FSx for NetApp ONTAP generally available.

In collaboration with NetApp (NTAP - Free Report) , AWS is offering a complete cloud service built on ONTAP with its latest move.

Notably, the new service is compatible with ONTAP’s features like multi-protocol access to network file shares, point-in-time snapshots, SnapMirror, FlexClone, deduplication, compression, compaction and thin provisioning.

With the service, customers will be able to shift NetApp-dependent on-premises applications to AWS by launching, running and scaling fully managed NetApp ONTAP file storage on AWS.

Amazon FSx for NetApp ONTAP replicates data across multiple Availability Zones automatically. It allows backups and data replication across AWS Regions.

Customers using the underlined service can seamlessly deploy and manage applications and data using the network-attached storage (NAS) workflows.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Customer Base to Expand

Customers using Amazon FSx for NetApp ONTAP will have to pay for the resources utilized, without any upfront payment.

This along with the above-mentioned benefits is likely to bolster the adoption rate of Amazon MemoryDB.

Notably, customers like CDW, FactSet, Rescale, Logz.io and Sysdig have started using the underlined service.

We believe that the growing customer momentum will continue to drive AWS’s top line. In second-quarter 2021, AWS generated revenues of $14.8 billion (13% of Amazon’s net sales), which rose 37% year over year.

Strengthening clientele will continue to aid its competitive edge against its peers like Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.

Per the latest Canalys data, Microsoft Azure and Google Cloud acquired a worldwide cloud market share of 22% and 8% in second-quarter 2021, respectively, while Amazon led with a 31% share.

However, AWS is currently facing stiff competition from Microsoft Azure and Google Cloud as the latter two are leaving no stone unturned to grab a bigger market share on the back of their advancing cloud offerings. This poses a serious challenge to Amazon’s dominant position in the cloud space.

Currently, Amazon carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Portfolio Strength

Despite intensifying cloud competition, AWS’s strengthening cloud portfolio remains noteworthy.

Apart from Amazon FSx for NetApp ONTAP, the company recently made its fully managed data visualization service called Amazon Managed Grafana generally available. The service lets customers track operational and IoT data from various sources by creating Grafana dashboards seamlessly.

The company made its fully managed in-memory database — Amazon MemoryDB for Redis —generally available. Amazon MemoryDB is Redis-compatible, which helps in the storage of the entire datasets in-memory.

The company announced the general availability of Amazon EBS io2 Block Express volumes, which has bolstered AWS’s storage area network capabilities. EBS io2 Block Express volumes are equipped with the SAN features like multi-attach and elastic volumes.

The company announced the general availability of Amazon Healthlake, which extracts and analyzes important health-related information, and securely stores them on the cloud.

We believe that the expanding AWS portfolio will continue to aid Amazon’s dominance in the booming cloud market.

Published in