Amazon.com Inc.’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”), is focused on bolstering its presence in the cloud industry through new initiatives.
The company announced a centralized backup service called AWS Backup. The service will offer customers with an automatic and continuous data backup to meet their business and regulatory requirements.
The new service will likely strengthen its key offerings. It will protect storage volumes, databases, and file systems in a better way by providing customers with a single service to configure, as well as audit the AWS resources.
More on the Headlines
Growing proliferation of cloud services on a worldwide basis is a testament to the fact that the cloud industry is booming. Most of the small, medium and large companies transfer their workloads as well as infrastructure to a cloud platform, which is distributed across multiple services including databases, block storage, object storage, and file systems.
The new AWS Backup service provides a centralized place to manage and automate backups across multiple services. It removes the need for custom solutions or manual processes that were initially created by customers to consolidate backup activity across services.
Bill Vass, VP of Storage, Automation, and Management Services, AWS, said “Today, we are proud to make AWS Backup available with support for block storage volumes, databases, and file systems, and over time, we plan to support additional AWS services."
The latest service will help the company in attracting more customers to its platform, in turn strengthening its clientele. Consequently, this will aid in the revenue generation of AWS.
Abundant Market Prospects
Per a report from HTF Market Intelligence, the global cloud backup market is expected to witness a CAGR of 23.4% between 2018 and 2025. Further, the market is projected to hit $6.82 billion by 2025.
Another report from Gartner states that the global cloud market is expected to reach $206.2 billion in 2019, reflecting year-over-year growth of 17.3% from the 2018 level.
The aforementioned reports reflect robust demand for cloud backup solutions across various levels, strengthening the prospects of the newly offered solutions.
Notably, Amazon is capable enough to reap benefits from this rapidly growing market with the help of its high-margin AWS, which generated $6.68 billion revenues in the last reported quarter and improved 45.7% on a year-over-year basis. This can be attributed to its strong customer base and reliable services.
Amazon is gaining traction among the cloud customers on the back of innovative AWS solutions.
Just last week, the company announced that it will acquire CloudEndure, which offers recovery services for cloud data that significantly helps in case of cyber-attacks. The deal is likely to help Amazon enhance its portfolio, with the addition of such disaster-resilient services.
It also introduced Amazon DocumentDB, a document database service that is compatible with MongoDB applications and tools. It also offers scalability and availability to customers, thereby helping them in managing their critical MongoDB workloads.
Additionally, the company’s AWS RoboMaker is now available. Notably, the service aids in the development, testing and deployment of robotics applications.
We believe that Amazon’s latest move will help maintain its dominance in the cloud market. In addition, the move will strengthen the company's competitive position against major cloud providers such as Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google and Alibaba (BABA - Free Report) .
Amazon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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