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How 2lemetry Plays Into Amazon's Cloud Computing Strategy (NASDAQ:AMZN) has a reputation for dabbling in a wide variety of industries outside of its ecommerce origins. These side ventures include everything from AWS (Amazon Web Services) to Kindle tablets to streaming media devices. Most recently, the company acquired 2lemetry, a company that develops Internet-of-Things (IoT) solutions for enterprises. Some of the initial coverage of this acquisition has focused on Amazon jumping into yet another new category, or on 2lemetry's retail-focused offerings. However, instead of viewing this as a new venture, the acquisition is better seen as a play by Amazon to help cement AWS as the go-to cloud service for enterprise.

I've previously written about the potential of B2B-focused IoT companies and the opportunity this market presents. Many companies are just beginning to connect their machinery (and create "smart" factories), and the IoT market is estimated to grow to approximately $14 trillion by 2020. Vendors that can get in on the ground floor of this transition can set themselves up for long-term success. 2lemetry's ThingFabric platform operates in this enterprise IoT niche. It essentially helps companies connect their machines together and then export the data to various enterprise apps. 2lemetry's current client listincludes a few major names, such as Honeywell (NYSE:HON) and Demeter Power Group. Read more