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Amazon (AMZN) Strengthens Cloud Portfolio With AWS Snowcone

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Amazon (AMZN - Free Report) is focused on strengthening its cloud computing division — Amazon Web Services (AWS). Moreover, the e-commerce giant is leaving no stone unturned to expand AWS offerings in a bid to deliver enhanced cloud experience to customers.

The move to make AWS Snowcone generally available is a testament to the aforesaid fact. Notably, AWS Snowcone is a secured edge computing and data transfer device, which is small, rugged and portable to carry, offering maximum flexibility.

AWS Snowball can operate in extreme environments or disconnected remote sites outside the data centres. Moreover, it is bestknown for its ability to collect, store, pre-process, and migrate data in harsh environments.

Additionally, the integrated feature of this device is likely to deliver enhanced user experience to customers. The device can be utilized as a lightweight analytics engine, data aggregation point, application monitor and an IoT hub with the support of AWS IoT Greengrass and Amazon EC2 instances, and huge local storage capacity.

Further, the new device aids data security during the transfer with its anti-tamper and tamper-evident features.

The latest move marks the expansion of the AWS Snow family, which comprises devices that can run outside the data centre smoothly.

AWS Gaining Customer Momentum

Amazon is likely to gain further traction among customers on the back of its latest move. AWS Snowcone, which can withstand any harsh condition, is ideal for several use cases that lack consistent network connectivity.

Hence, AWS is well-poised to gain momentum across healthcare, industrial IoT, drones, critical edge computing, content distribution, data migration, video content creation, and transportation on the back of AWS Snowcone.

Notably, customers, which include Deluxe Entertainment Services, SmugMug+Flickr, Federated Wireless, Novetta and CommScope, have already started utilizing the device.

We believe growing customer momentum will help AWS in sustaining its dominant position in the booming cloud computing space.

Amazon to Benefit

We believe expanding clientele will continue to accelerate AWS sales, which in turn, will drive Amazon’s top line.

Notably, Amazon is currently benefiting from strengthening AWS services. In first-quarter 2020, AWS generated $10.2 billion sales, accounting for 14% of Amazon’s net sales.

The company’s constant efforts toward reinforcing cloud offerings portfolio in this data-driven world holds promise and instills investor optimism in the stock.

Additionally, strengthening customer base and solid AWS portfolio are likely to continue providing AWS a competitive edge against Microsoft’s (MSFT - Free Report) Azure, Alphabet’s (GOOGL - Free Report) Google Cloud and International Business Machines’ (IBM - Free Report) cloud division, IBM Cloud.

Per the latest Synergy Research Group report, Microsoft and Google acquired worldwide cloud market share of 18% and 8% in the first-quarter 2020, respectively,while Amazon led with 32% share of the market.

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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