) recently announced a cloud data storage solution from Amazon
Web Services (AWS), thus further expanding its cloud
Amazon Redshift, as this new cloud-based data warehouse
service is called, a low-cost solution for managing and
automating common administrative tasks like provisioning,
configuring, monitoring, taking backups and securing a data
The company said that any AWS customer can launch a Redshift
cluster from within the AWS management console for $1,000 per
terabyte per year.
Earlier, companies incurred significant costs to build their
own infrastructure for data storage. They had to make a
substantial payment upfront, after which they would invest
further to purchase additional storage space anticipating growing
This resulted in under-utilized capacity and unnecessary
expenses. With Amazon Redshift, companies will not only be able
to lower the cost of a data warehouse but also reduce the
workload by analyzing large amounts of data very
Currently, Amazon Redshift is only available in the U.S. East
(N. Virginia) Region but will be rolled out to other AWS Regions
in the coming months.
Cloud storage came into prominence in 2009, with Nirvanix and
Amazon's Simple Storage Service (S3) being two of the major
pioneers. Since then, Amazon has continued to dominate the space,
with other players like
) offering their own solutions.
Amazon is one of the leading players in the extremely
fast-growing retail ecommerce market. Strong growth prospects
here are making the market more competitive by the day.
Additionally, the company serves developers through Amazon Web
Services (AWS), which provides access to technology
infrastructure that developers can use to enable various types of
Amazon is expanding AWS internationally and investing heavily
in technology infrastructure to support the rapid growth in AWS.
We remain extremely positive about AWS's growth and expect Amazon
to remain one of the leading players in the fast-growing
Though these investments could suppress near-term margin
expansion, Amazon is expected to benefit in the long term, given
significant growth potential in domestic and more so in
Currently, Amazon has a Zacks Rank #3 (Hold). Other stock that
has been performing well and are worth looking into include
) which carries a Zacks Rank #2 (Buy).
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