Amazon’s (AMZN - Free Report) endeavors to enhance computing offerings reflect its focus on innovations in cloud services.
This is evident from the latest preview launch of Amazon Braket by Amazon Web Service (AWS) at the AWS re:Invent event.
Notably, Amazon Braket is a fully-managed quantum computing service that enables customers to explore and experiment with quantum computing hardware by providing a single development environment to build quantum algorithms. Further, the service enables testing of these algorithms on quantum computers.
Further, AWS has teamed up with D-Wave, IonQ and Rigetti for their respective quantum annealing, ion trap devices and superconducting chips that customers will be able to assess by using the new service.
We believe that the latest move expands AWS’ services portfolio. Further, the company finally forays into quantum computing space with Amazon Braket.
Solid Quantum Computing Efforts
AWS’s efforts in the promising quantum computing market are likely to aid its adoption rate that will drive its top line.
Apart from its quantum computing service, the company is also establishing AWS Center for Quantum Computing at the California Institute of Technology (Caltech). This initiative focuses on the development of new powerful quantum computing hardware with support from Amazon, Caltech and other top academic research institutions.
In addition to this, AWS announced a program — Amazon Quantum Solutions Lab. The unit aims to explore and identify practical uses of quantum computing by building internal expertise by connecting customers with Amazon’s quantum computing experts, technology and consulting partners.
Growth Opportunities, Competitive Scenario
The global quantum computing market is booming on the back of growing need for model capability boost and simulation of complex data. Further, the technology is capable of solving critical computational problems.
Per a report from MarketsandMarkets, this particular market is expected to reach $93 million in 2019 and $283 million by 2024 at a CAGR of 24.9%.
Further, a Tractica report indicates that revenues in the enterprise quantum computing market worldwide are anticipated to reach $9.1 billion by 2030.
Given upbeat scenario, companies like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google and International Business Machines (IBM - Free Report) among other cloud service providers are leaving no stone unturned to capitalize on the above-mentioned growth opportunities.
We note that Microsoft Azure recently announced a full-stack, open cloud ecosystem — Azure Quantum — which is a diverse set of quantum services. In partnership with 1QBit, Honeywell, IonQ, and QCI, the company strives to offer robust quantum solutions, software and hardware.
Meanwhile, Google and IBM are also undertaking efforts to strengthen their footprint in the quantum computing space.
Nevertheless, Amazon’s growing initiatives in this space are likely to strengthen its competitive position against these companies. Moreover, the company is likely to gain traction among scientists, researchers and developers on the back of Amazon Braket that will enable them to quickly initiate quantum computing.
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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