Amazon: Notes From The AWS Conference

Summary:

• Amazon AWS Conference underlines my point of view optimistic about stocks and short-term competitiveness of AWS.

• SaaS and offer IoT the next stage of growth potential and margin expansion.

• A long-term threat to the shares of Alibaba, which focuses on the North American market.

Upon returning from the Amazon Conference (NASDAQ AMZN) AWS, the author had the opportunity to refresh the lights and the potential implications. In summary, I remain positive on AWS an opportunity for AMZN, its position in the market in the short term and solid customer base. The growth of Internet Business Intelligence objects and should support the medium-term outlook and the fact that the company has not announced a price reduction at the conference suggests that the cloud remains price stability, which is positive for all market players, such as Google (NASDAQ: GOOG), Microsoft (Nasdaq: MSFT) and even the new competitor to Alibaba (NYSE: BABA). AMZN remains one of the best ideas from the Internet. Not only beautifully core growing business of electronic commerce, the first of ecosystems company promises to be a game changer in the e-commerce space, similar to the way BABA is to create an ecosystem it consists of services financial, payment, media and value added services. I would be a buyer of the action at this level.

Compared with its competitors, AWS AMZN seems to be more dominant than ever. Historically, customers and partners of the event speak of competitiveness and GOOG MSFT, but it was interesting this year AWS believes that consensus is far ahead of its competitors, and is truly in a class hand. More importantly, AWS has a loyal customer base that has been in the platform since its early days. I note that many new companies have worked on the AWS platform and stood on the platform as they grew. In recent years, the largest as Netflix (Nasdaq: NFLX) company, General Electric (NYSE: GE) and BMW (OTCPK: BAMXY) began to choose their supplier AWS platform, and it appears that these companies They go beyond the experimental stage and the stage of mass adoption, which validates the capacity and reliability of AMZN. That said, a significant migration from the largest company in the AWS is a likely scenario, and the company can definitely benefit from this trend.

The Internet of Things will appeal to the outlook for growth that allows companies to connect with AWS services AMZN as Lambda, Kinesis, S3, machine learning, etc., and analyze data without having to manage any infrastructure . This will surely attract companies like flies IoT trend, in my opinion. Moreover, a product of Business Intelligence as QuickSite is an indication that AMZN continues to move in the SaaS business model that commands a higher margin. However, the company is definitely on the right track for growth.

The perception is that a short-term threat to the AWS is unlikely, but warn that competitive pressure could escalate in the long run, both players funded as Baba engaged increasingly in the US market (see: Alibaba : expansion of cloud services in the United States). Baba has recently launched its second data center, and my opinion is that the company will continue to build the infrastructure to support its growing e-commerce. One way to attract customers is the price and services, and Baba could potentially be a natural choice for companies looking to expand into China. The long-term implication of this could be that Baba is becoming a serious threat for AMZN, since both operate in the area of ​​electronic commerce.