Credit: AmazonAMZN is leaving no stone unturned to bolster its presence in the global cloud market on the back of its strengthening cloud platform, Amazon Web Services ("AWS").
Reportedly, AWS won a contract from Iridium Communications IRDM to develop a satellite-based network called CloudConnect for Internet of Things (IoT) applications.
Per the partnership, Iridium will be leveraging AWS' robust IoT services to build its new network service. This will help Amazon to gain traction in the growing IoT space further.
CloudConnect will help Amazon improve connections with the entire world as it will enable the AWS IoT service users to connect to remote areas where Internet isn't even accessible. Further, the company will enable the facility of utilizing Iridium's satellite network's capacity for its cloud customers.
We believe these strong endeavors will help the company expand its key offerings and deliver enhanced cloud experience to its customers. Consequently, this will expand customer base which in turn will drive its top-line growth.
Coming to the price performance, shares of Amazon have returned 72.1% over a year, outperforming the industry 's rally of 33.1%.
Increasing Focus Toward Satellite & Space
AWS has been eyeing the satellite and space area for quite some time now in a bid to explore the opportunities of the space.
In the beginning of this month, CNBC reported that the company is aggressively looking to hire people who can work on its new space and satellite initiative, namely interconnecting space system networks.
Among the company's several job listings, there was an opening for product manager for space related services and the launch of spacecraft.
Further, Amazon is in talks with the president of Chile to house and mine astrodata from Chile's giant telescopes. Moreover, Amazon hosts cloud platform for the Hubble Telescope's data and the International Centre for Radio Astronomy Research in Australia.
Additionally, NASA is a long term customer of AWS and this will continue to aid its momentum in this particular area.
Moreover, the latest move of AWS has created an opportunity for it to develop satellite based cloud applications.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote
Gaining Competitive Edge
With the aid of these endeavors, Amazon has fortified its competitive position against the other big cloud players such as Microsoft's MSFT Azure and Alphabet's GOOGL which are also putting strong efforts to expand their footprint in the growing cloud market.
In terms of space and satellite, Google has a customer named Planet which has moved its satellite imagery and image processing to Google Cloud Platform. Further, the company has tie up with Airbus Defence and Space which leverages Google's cloud platform to store vast data generated by its One Atlas.
Further, Google is a member of Chile's Large Synoptic Survey Telescope ("LSST"), which will be fully operational in Cerro Pachon in 2022.
Meanwhile, Microsoft's Azure has also tie up with NASA but has no such exposure to telescope data.
Nevertheless, Amazon, by utilizing its improving IoT technologies in the satellite areas, will continue to lead the cloud roster as satellite services have unique and necessary characteristics required for proper implementation of an IoT ecosystem.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Iridium Communications Inc (IRDM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
