Back to top

Image: Bigstock

Amazon's Neptune Graph Database to Provide Competitive Edge

Read MoreHide Full Article

Amazon’s (AMZN - Free Report) cloud computing arm Amazon Web Services (“AWS”) is focused on reinforcing its presence in the cloud industry. The company has announced that Amazon Neptune, which was unveiled at the end of last year, is now available to the general public.

Amazon Neptune is a graph database service that helps the application developers to build graph based application which requires access to unstructured data with millisecond latency.

Further, the service enables the developers to query connected datasets by storing and navigating the data efficiently. This is more advanced than the services provided by the relational databases. Further, it utilizes standard APIs which eases the running of an application.

AWS’ service portfolio expands with the addition of Amazon Neptune. The service will help AWS to gain further traction in the market with the growing demand for graph databases in the cloud industry.

The company is likely to witness growth in the adoption rate of AWS on the back of an expanding portfolio, consequently aiding top-line growth.

Notably, shares of Amazon have returned 39% on a year-to-date basis, outperforming the industry’s rally of 21.1%.



Strengthening Competitive Position

With the latest move, the company is likely to gain competitive edge against its peers.

Graph database is an emerging trend in the cloud industry. It provides storage of data in graph format, which includes nodes, edges and properties. Tech giants such as Google, Facebook and Twitter are widely adopting this database for data management.

Consequently, Amazon’s AWS has immense growth opportunities in the market with Amazon Neptune. Notably, it will compete against the likes of Microsoft (MSFT - Free Report) , International Business Machines (IBM - Free Report) and Oracle (ORCL - Free Report) .

Last year, Microsoft Azure introduced Azure Cosmos DB which is a multi-model graph database that manages data efficiently. It also uses APIs to connect and query the datasets.

IBM also launched its graph database last year, which is based on open source technologies. Further, Oracle’s has its own graph database, which is also gaining traction. The company is now emphasizing more on self-driving database by leveraging the power of graph database.

AWS Gaining Traction

With improving service offerings, AWS continues to perform well in the market. Last quarter, it maintained dominant position in the market. Per the data from Synergy Research, it acquired 33% of market share which came well above the shares of Google Cloud and Microsoft Azure.

Recently, Amazon teamed up with Kaleido, which is a provider of blockchain business cloud service. The partnership will help the AWS customers to manage their blockchain projects at a higher speed.

Amazon Neptune has already been previewed by Samsung, Thomson Reuters, Pearson, Intuit, Siemens, AstraZeneca, FINRA, Blackfynn and Amazon Alexa and the companies have provided strong feedback.

Nevertheless, AWS’ clientele is expanding significantly. It has acquired three clients in this month. They are Verizon, Oath and Ryanair. Last month, Shutterfly also migrated its infrastructure to AWS.

Additionally, companies like GoDaddy, Cox Automotive, NextGen Healthcare, Amway, LG Electronics selected AWS during the first quarter, by the end of which customer base totaled 10K.

We believe Amazon’s strong focus toward innovation will continue to benefit the company’s market position in the long haul.

Currently, Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Published in