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Amazon (AMZN) Strengthens AWS Services Portfolio With MemoryDB

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Amazon’s (AMZN - Free Report) strong efforts to expand cloud computing offerings are the testaments to its customer-oriented focus.

This will help its cloud division, Amazon Web Services (“AWS”), which has become the key catalyst behind the company’s top-line growth, to expand its presence in the booming cloud market.

The move to make its fully managed in-memory database — Amazon MemoryDB for Redis —generally available is the evidence of the above-mentioned fact.

Amazon MemoryDB is Redis-compatible, which helps in the storage of the entire datasets in-memory. Further, it aids in developing applications needing a durable database with sub-millisecond latency by offering durability at any scale, low latency and high throughput.

Users are not required to manage a cache, durable database, and the infrastructure individually, while building high-performance applications as the underlined database can be used as a single and primary database.

Customers will be able to use the same familiar and flexible Redis data structures and application programming interface, while developing applications using Amazon MemoryDB., Inc. Revenue (TTM), Inc. Revenue (TTM), Inc. revenue-ttm |, Inc. Quote

Customer Base to Expand

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

Notably, customers using the new in-memory database will have to pay for the database capacity 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 Netflix, Twilio, Cimpress, and transACT have already shown interest in the underlined database.

We believe that the growing customer momentum will continue to drive AWS’s top line. 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 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 MemoryDB, the company recently made its Amazon EBS io2 Block Express volumes generally available, which have bolstered AWS’s storage area network (“SAN”) capabilities. EBS io2 Block Express volumes are equipped with SAN features like multi-attach and elastic volumes.

Further, 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.