Amazon Ups the Ante on Cloud Computing Solutions

Grazed from FinancialBuzz. Author: Editorial Staff.

Amazon is gearing up to take on business technology solution providers like Oracle (NYSE: ORCL). At its recent conference, it announced a database designed to take Oracle head on. The move is a step towards offering more sophisticated solutions, not just basic computing. This would include software to manage user behavior and compliance solutions for clients in regulatory driven sectors.

Lofty goals

Amazon is already a dominant player in the global cloud infrastructure space. According to a report by Synergy Research Group, Amazon currently holds a significant 27 percent market share. However, recent pricing wars and fierce competition have put pressure on Amazon’s revenues. With growth stalling in recent quarters, Amazon Web Services (AWS) is looking for opportunities. Specifically, how to deliver database and software-like solutions via the internet. The idea is to get clients to trade in their servers, software and networking equipment for a cleaner cloud based solution…

The road ahead isn’t easy. AWS has already had to bow to national government policies and contend with system failures. It is also on weaker footing on the profit front against competitors like Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT). Quarterly profits at these firms outdo Amazon’s entire 17-year track as a public company. There is also the ever present risk of Wall Street losing its faith in Amazon when its finds a contender that returns better profit figures…

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