Why Amazon’s AWS Will Continue to Be a Leading Force in Cloud


Dec. 12 2016, Updated 9:37 a.m. ET

Amazon to entice developers with Lex, Polly, and Rekognition

Amazon.com’s (AMZN) investments and launches in the AI (artificial intelligence) space are opportune because this sector is expected to experience a boom in the future. Amazon’s newest launches, Lex, Polly, and Rekognition, are expected to see increased adoption because developers need to pay only for their usage, which means that these new launches should be scalable and cost efficient.

With these offerings, Amazon has streamlined the access to neural networks, the data needed for training, and the proficiency in machine learning. Developers should now be able to begin using AI without the need to commit to infrastructure investments up front or to build machine learning algorithms.

According to a recent report from Tractica, a market intelligence firm, enterprise AI systems is expected to become a $11.1-billion market by 2024, as compared to $202.5 million in 2015.

Article continues below advertisement

Cloud adoption and leadership

Amazon’s AWS is growing faster than the company’s traditional business segments, thanks to increased investments and new offerings that have kept AWS ahead of the competition. Meanwhile, the market for cloud computing continues to grow at a rapid rate as the enterprise transition toward the cloud is still in the nascent stage.

Enterprise Technology Research conducted a study that saw a participation of C-level executives from Global-100 and Fortune-500 companies. Thomas Del Vecchio, Director of Research at Enterprise Technology Research, sharing the findings of the study on CRN stated that public cloud adoption is rapidly disrupting traditional IT architectures as well as IT stacks.

Continue to the next parts of this series for a look at Amazon’s disclosure about its cloud infrastructure and how this, too, shows the mounting threats from Microsoft (MSFT), Oracle (ORCL), and IBM (IBM).


More From Market Realist