Amazon (AMZN) Strengthens AWS Portfolio With Macie Updates
Amazon AMZN is continuously taking steps to strengthen 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 latest introduction of updated features in Amazon Macie is a testament to the same. Notably, Amazon Macie is a fully managed data security and data privacy service that aids in discovering and protecting sensitive data in AWS with the help of Machine Learning (ML) and pattern matching techniques.
As part of the latest move, AWS has updated ML models of the underlined service for more accurate detection of Personally Identifiable Information (PII). Further, the company has added support for customer-defined data to it.
Further, the updated Macie features native multi-account management with AWS Organizations.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote
Move to Benefit Amazon
We note that Amazon Macie with updated features will make identification and protection of sensitive data of businesses and organizations at scale seamless.
Moreover, the company has significantly reduced the pricing of Macie. This will allow customers to perform the abovementioned task at an 80% or even greater discount when compared with previous pricing.
Additionally, strong availability of Amazon Macie remains a major positive. Notably, it is currently available across 17 AWS Regions worldwide. Moreover, it will be expanded to more regions in the near term.
We believe the latest move is likely to help AWS in bolstering customer momentum further. Companies like TIBCO Software, Digital Guardian and Edmunds have already started utilizing Macie.
Consequently, this is likely to contribute to AWS sales in the near term. This, in turn, will drive Amazon’s top line.
Notably, Amazon is 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 strengthening cloud services portfolio in this data-driven world holds promise. This, in turn, instills investor optimism in the stock.
Coming to the price performance, Amazon has returned 31.4% on a year-to-date basis, outperforming the industry’s rally of 21.1%.
Competitive Gain
Amazon is well-poised to capitalize on the increasing demand for security services in cloud market on the back of its latest move.
Further, the move will strengthen the company’s competitive position against Microsoft MSFT and Alphabet GOOGL, which are also leaving no stone unturned to deliver enhanced security service to their cloud customers.
Notably, Microsoft Azure offers Threat Detection that detects attacks and other suspicious database activity quickly and sends alerts to admins.
Meanwhile, Google Cloud offers Data Loss Prevention API, which helps in discovering and redacting sensitive data.
Nevertheless, AWS’ advanced updates in Macie remains noteworthy, which will bolster its adoption rate.
We believe expanding AWS portfolio and growing customer momentum will continue provide Amazon a competitive edge against other cloud providers including Alibaba BABA and International Business Machines. Further, it will aid its dominant position in the global cloud market.
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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