Amazon tries to win the hearts of large companies

The online retailer is making another push at luring major customers to its cloud-computing services.

By Trefis Mar 28, 2012 5:18PM
Amazon (AMZN) is the world's largest online retailer and also runs the largest cloud-computing platform, called Amazon Web Services.

The platform has gained an amazing amount of traction in the last couple of years, but it still gets the cold shoulder from large companies. Those corporations understandably prefer to lock up data on their own servers where they can secure it.

Amazon's cloud platform competes primarily with Microsoft's (MSFT) Azure, Google's (GOOG) App Engine, offerings like Heroku and Force.com by Salesforce.com (CRM) and Rackspace (RAX). (Microsoft owns and publishes Top Stocks, an MSN Money site.)

Amazon Stock Break-Up
Amazon is trying to change that, and recently entered into an agreement with Eucalyptus Systems, which helps companies develop cloud services on their own premises. The new deal with Amazon enables compatibility between Amazon Web Services and the on-premise cloud environments powered by Eucalyptus.

Customers will be able to efficiently move their workloads and data between their private cloud environments and Amazon's cloud. They can switch to Amazon's cloud and back without any changes in code, as both services will use a common API.


This could increase the adoption of Amazon's cloud infrastructure in the enterprise. Large companies will have an easy way to scale up as needed while keeping more sensitive data on their private clouds.


We expect Amazon's revenue from cloud and other web services to increase steadily in the coming years.


Amazon Cloud and Other Web Services Revenues

Cloud and other Web services account for nearly 3% of Amazon's total value. We currently have a $205 Trefis price estimate for Amazon, which stands nearly 5% above its market price.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
279
279 rated 2
454
454 rated 3
606
606 rated 4
675
675 rated 5
690
690 rated 6
622
622 rated 7
453
453 rated 8
301
301 rated 9
111
111 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
VZVERIZON COMMUNICATIONS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.