Amazon Looks to Expand Outside Retail

Earlier this week, Amazon announced some new initiatives at their Web Services conference. Amazon announced Kinesis, which is a new real time data processing service. The conference set a very positive tone for the future as the Web Services Head predicted that new projects will eventually surpass Amazon's giant retail business. Foremost is the expansion into the desktop virtualization market with Workspaces, which offers secure, cloud based access to documents and applications via devices ranging from laptops to tablets. The service reduces the hassle of upfront and ongoing costs to less than 50% of the expenses associated with traditional desktop virtualization infrastructure solutions. Amazon also unveiled AppStream, a high definition, cloud-based applications streaming product; and CloudTrail, a security and compliance-boosting API call log. By expanding into these services, Amazon is issuing a direct threat to current cloud based enterprise solution companies like Citrix and VMware. For this reason, shortly after the announcements, Citrix’s stock dipped more than 5% while VMware declined as well. Amazon on the other hand, gained over 3% as investors were happy with the new directions and the future possibilities of expansion by the company.

-Varun Sawhney