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Amazon Unveils AWS RoboMaker, Gains Competitive Edge in Cloud

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In a bid to strengthen presence in robotics, Amazon’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”), has unveiled a robotic development service called AWS RoboMaker.

The new service based on Robot Operating System (ROS), a widely used robotics software framework, provides AWS Cloud9-based robotics integrated development environment. This will assist the developers in building, running and deployment of their robotics applications.

RoboMaker aids in on-demand testing of application by enabling seamless multiple parallel simulations with racing tracks, indoor rooms and department stores. AWS ensures robot’s functionalities like streaming data, learning, communicating and navigating by integrating its new service with other services like machine learning (ML), monitoring, and analytics services.

Apart from these, AWS’ latest robotics service offers fleet management solution for remote applications by assimilating AWS Greengrass. It also supports over-the-air (OTA) deployment of robotics applications.

Amazon cloud services portfolio has expanded with the new service launch. Moreover, RoboMaker will aid AWS in gaining traction among the robotic application developers. This bodes well for the company’s cloud customer base.

Robotics Holds Promise

The latest move of Amazon enables the company to make its foray into Robotics as a Service (RaaS) market. Growing demand of robots in household, office and warehouse in order to simplify and facilitate work in this fast-paced world endows this market with immense potential.

Per a report from Research and Markets, the global RaaS market is expected to witness a CAGR of 19.73% between 2018 and 2022.

We believe AWS is well poised to reap benefits from this rapidly growing market with the support of RoboMaker and its robust features.

Gaining Competitive Edge

The latest move of the company provides it with competitive advantage against other big cloud players in the market such as Microsoft’s (MSFT - Free Report) Azure and Alphabet’s (GOOGL - Free Report) Google Cloud.

Although Azure has a partnership with SoftBank Robotics Corporation with the help of which it is working on the development of next-generation cloud-enabled robot by utilizing its IoT Suite and SoftBank’s humanoid robot, Pepper. However, the company lacks a constructive robotic service like RoboMaker.

Meanwhile, Google is gaining steam in RaaS space with its strengthening artificial intelligence (AI) skills, ML techniques, data management capabilities and cloud services.

The search giant is set to launch Google Cloud Robotics Platform in 2019 for the robotics application developers.

Nevertheless, the latest move of AWS gives Amazon the first mover advantage. Further, the service has already gained traction among few companies namely Stanley Black & Decker, Robot Care System, Open Robotics and FIRST.

All these are likely to aid the dominance of AWS in the cloud market worldwide.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector that can be considered is Adobe Systems (ADBE - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Adobe Systems is currently pegged at 16.4%.

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