2015 Advertising Opportunities - Find Out More!

Oozing Investment For Amazon

Oozing Investment For Amazon

Results and Background

Although the results of the second quarter have not been too amazing for Amazon, Chief Financial Officer Thomas J. Szkutak has different plans for Amazon. Even after not putting up a very impressive performance, investment in cloud computing technology by the company will not stop. In fact, they have plans to further spruce up the investments in one of their major domains – cloud computing.

According to unofficial reports, Amazon has plans to spend capex funds to the tune of $850 million on its cloud technology division. This is considered to be a considerable jump from its previous spending of around $650 million on cloud infrastructure. However, it might be difficult for the company to give an exact break down of how much of that investment goes into providing software-as-a-service to its clients as opposed to its retail technology business (running Amazon.com).

Why this sprucing?

One might well argue that since first-quarter results have not been too good, why in the world would Amazon try to further extend its investment here instead of technology. According to financial experts, a company in such a situation should ideally be cutting its spending rather than increasing it. However, it seems that Amazon has quite different plans in mind. With industry giants such as Google, Rackspace, HP, etc. racking up their spending on cloud technology, it is an alarm bell for Amazon not to be left behind in the race. Although recent quarterly results have not been as good as previously for Amazon, they still demonstrate the company’s leadership in its domain. They also demonstrate Amazon’s ability to provide superior software-as-a-service to its consumers on a continuous basis, without compromising on quality.

Other companies mentioned above in this article have deep pockets and are presenting Amazon with tough competition. Therefore, Amazon needs not only to be cautious in its approach, but also aggressive in its spending. Thus, it needs not only to demonstrate increased consumer trust, but also its willingness to adopt long-term objectives. These objectives must also be achievable in every sense.

Although onlookers believe that this is one of the lowest-margin businesses in the entire industry, and thus companies like Amazon should not be spending so high on infrastructure, there are also counter views existing in the market. With increasing dependence of consumers on cloud infrastructure, and with the majority of the big companies moving their IT to cloud platforms, companies such as Amazon have amazing opportunities for growth lying in front of them. What they really need to have at the current point in time is a long-term vision of growth. In line with the same vision, it seems quite a logical decision for Amazon to increase its investment, even after receiving unspectacular results in one particular quarter. After all, it will be the staying horse that finally wins the race, and Amazon has enough potential to be exactly that.

By Kaamil Nakhasi

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts It’s no secret that Cloud Computing is more than just a buzz term as that ship has sailed off a long time ago. More and more companies are adopting the uses and benefits of cloud computing while aggressively factoring cloud services spending into their budget. Included is an excellent…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow  Online Education is a very exciting topic for many as it opens up many new doors and opportunities. We’ve touched on areas such as Massive Open Online Sources (MOOC) which provides tremendous levels of cloud based interconnectivity. We’ve taken a look into higher education,  the increased demand for online courses as well as…

PaaS And IaaS: Rising Champions Of Cloud Computing

PaaS And IaaS: Rising Champions Of Cloud Computing

PaaS and IaaS: Rising Champions of Cloud Computing In the cloud conversation, Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) appear much less than the famed Software as a Service (SaaS). This is not surprising when you consider that a world already populated with built platforms and infrastructure has but to operate…

Cloud Infographic – Big Data Survey: What Are The Trends?

Cloud Infographic – Big Data Survey: What Are The Trends?

Jaspersoft Big Data Survey Shows Rise in Commitment to Projects and Decline in Confusion Nearly 1,600 Jaspersoft Community Members Participate in Second Jaspersoft Big Data Survey San Francisco, February 4, 2014 – Jaspersoft, the Intelligence Inside applications and business processes, today shared results from its Big Data Survey. Nearly 1,600 Jaspersoft community members responded to…

Featured Sponsors

The Internet of Everything Opens Up The World

The Internet of Everything Opens Up The World

Shaping The World With New Technologies As a connected collection of intelligent objects, the Internet of Everything promises to open up those areas of the world hardest hit by economic, political and agricultural blights. Relatively inexpensive devices, paired with revolutionary energy sources and unprecedented access to information offer great promise to farmers and workers in…

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop The mannequin in the store window stares blankly ahead as shoppers look at the clothes it is dressed in and contemplate a purchase. One shopper makes some comments. “It’s nice. I wonder if they have my size.” Another takes a few steps inside the store to see where these particular clothes might…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

2015 Advertising Opportunities - Find Out More!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter