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Amazon (AMZN) Boosts AWS Portfolio With Lookout for Vision

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Amazon’s (AMZN - Free Report) strong efforts toward expanding cloud compute offerings are the testaments to its customer-oriented focus. Notably, this will help its cloud division Amazon Web Services (“AWS”) to expand presence in the booming cloud market further.

The move to make its new service offering anomaly detection solution — Amazon Lookout for Vision—generally available reflects the same.

Notably, the new service is well-equipped to process several images an hour to detect defects and anomalies in manufactured products.

Using computer vision and Machine Learning (ML) capabilities, including "few-shot learning", the service analyzes images to spot manufacturing and production defects such as cracks, irregular shapes, dents and incorrect color.

Further, Amazon Lookout for Vision maintains high accuracy, with various camera anglesand lighting arising from changes in work environment.

We believe that the latest move is likely to help AWS gain strong traction among industrial and manufacturing customers.

Customer Base to Expand

We note that customers using the new service will have topay on an hourly basis for their actual usage, without any upfront payment.

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

Notably, customers like GE Healthcare, Basler and Dafgards have already shown interest in thenew service.

We believe that the growing customer momentum will continue to drive AWS’s top line. Moreover, strengthening clientele will continue to aid its competitive edge against its peers like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google and Alibaba (BABA - Free Report) .

Per the latest Canalys data, Microsoft Azure, Google Cloud and Alibaba Cloud acquired worldwide cloud market share of 20%, 7% and 6% in fourth-quarter 2020, respectively, while Amazon led with a 32% share.

Amazon.com, Inc. Revenue (TTM)

 

Amazon.com, Inc. Revenue (TTM)

Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote

Portfolio Strength

The latest move bolsters the portfolio of AWS services and products.

Apart from Amazon Lookout for Vision, the company’s recent introductions include the cloud-based healthcare service called Amazon HealthLake.

Further, the rollout of nine Amazon SageMaker capabilities, which strengthened the company’s ML-based cloud offerings, remains noteworthy.

Additionally, AWS’s unveiling of five capabilities for Amazon Connect and four new container services is another positive.

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

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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