Amazon’s (AMZN - Free Report) cloud computing arm is shifting focus from data warehousing to building out data lakes in a bid to strengthen cloud space presence further.
This is evident from Amazon Web Services’ (AWS) latest move of making AWS Lake Formation generally available to customers. The service is a fully managed one, which aids in seamless creation of a data lake.
Notably, a data lake enables the placement of data in a central place in order to help customers perform analytics and apply Machine Learning (ML) techniques across their data irrespective of the format and actual location of data.
Notably, data lake creation involves several manual steps such as collecting and cataloging data, and making it ready for analytics purpose by maintaining security.
However, AWS Lake Formation automates all these time-consuming and complex steps, which in turn will enable customers to directly analyze their data with the help of Amazon Redshift, Amazon Athena, AWS Glue, Amazon EMR, Amazon QuickSight and Amazon SageMaker.
We believe the latest move will strengthen AWS services portfolio.
Move to Drive Customer Momentum
With the robust capabilities of the new service, Amazon is likely to gain traction across customers by delivering enhanced experience of data analytics.
The company is already enjoying solid momentum across i customers like Amgen, Alcon, Life360, Zalando, Accenture, Quantiphi and Panasonic Avionics, which are leveraging AWS Lake Formation for controlling their data at a central point and analyzing it.
We note that strengthening customer momentum on the back of the new service is anticipated to help the company in rapidly penetrating into the booming data lake market.
Per a report from Mordor Intelligence, the market holds immense potential and is expected to witness a CAGR of 27.4% between 2019 and 2024.
Competition to Intensify
Notably, AWS is not the sole player in this space with the likes of Microsoft (MSFT - Free Report) , International Business Machines (IBM - Free Report) and Alphabet’s (GOOGL - Free Report) Google also clamoring for a piece of the data lake market.
Notably, Azure, Google Cloud and IBM cloud platform also offer data lake solutions and related architectures similar to AWS in a bid to expand presence in the cloud market.
We believe strengthening endeavors of all the above-mentioned cloud service providers in order to gain traction across customers are likely to intensify the competition further.
Nevertheless, AWS’ expanding services portfolio is expected to continue aiding it in winning clientele, which in turn will reinforce its dominance in this potential cloud market.
Per Synergy Research Group’s data, Microsoft and Google acquired a market share of 16% and 8%, respectively, in second-quarter 2019. Nevertheless, Amazon maintained its leading position with 33% of market share, far ahead of Microsoft and Google.
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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