Amazon.com, Inc. (NASDAQ:AMZN) Cloud business is booming and the latest earnings report by the ecommerce giant has proved it. In a program on CNBC, Weblogs CEO Jason Calacanis said that Amazon Cloud business is so huge that it could become larger than the core business of Amazon.com, Inc. (NASDAQ:AMZN). Amazon Web Service are still the top choice of the Enterprise players, but the company also has got challenges in the Cloud space. The host of the program said that Amazon.com, Inc. (NASDAQ:AMZN) has two main challenges. The biggest challenge is the saturation of the Cloud market. Every company is now tapping in the Cloud. While the startups and low-end companies are not a problem for Amazon.com, Inc. (NASDAQ:AMZN), Microsoft, IBM and Salesforce could still pose a massive threat to the company. With the increasingly cost effective and competitive dynamics of the Cloud market, Amazon.com, Inc. (NASDAQ:AMZN) is facing challenge because the vendors, clients and potential business partners now have a lot of options at hand.
Cloud commoditization and low pricing are the problems Amazon.com, Inc. (NASDAQ:AMZN) could face in the coming days. In order to compete with the market players, Amazon will have to drastically cut the prices.
Calacanis said that Amazon.com, Inc. (NASDAQ:AMZN)’s drone business is another area where the company is making a huge innovation. He thinks that delivering the products in minutes via drones is a disruptive thing and could change the e-commerce market forever. Another expert said that Amazon.com, Inc. (NASDAQ:AMZN)’s Cloud business is tremendous. Margins are great and the growth will surge in the coming months.
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).
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