Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Amazon Web Services to be Reportedly Used by Salesforce

Amazon.com, Inc. AMZN has reportedly struck a deal with Salesforce.com, Inc. CRM per which Salesforce will build some parts of its Internet of Things (IoT) cloud software on Amazon Web Services (AWS).

If the reports are true, Salesforce will be the latest to join the long list of AWS users that includes big names like Netflix, Expedia and Adobe Systems.

Salesforce’s IoT Cloud, introduced last fall, collects data from various connected devices such as smartphones, PCs, wearable devices and industrial sensors and recommends suitable actions to sales and customer service representatives. The service is still being tested and is expected to become commercially available later this year.

Microsoft Corporation MSFT, General Electric Company GE and Amazon itself are some of Salesforce’s peers in the IoT space.

With this move, it appears that Salesforce is planning a shift from data centers to cloud, at least partially. According to the executive vice president of Salesforce’s IoT Cloud Adam Bosworth, AWS is a good choice when it comes to handling services that are expected to grow fast in the coming years.

“We had to have the safety valve of a public cloud or public clouds to do what we were doing,” he added.

We note that enormous growth of Amazon’s cloud business is bothering clients who prefer to keep options open to other cloud computing vendors as well. Earlier this year, Apple agreed to power part of its iCloud with Alphabet’s cloud platform, in addition to AWS.

It’s likely that Salesforce will also avoid being locked into AWS as signaled by Bosworth when he said, “Salesforce has designed its IoT Cloud to run on any public cloud, as well as on servers within its own data centers”.

 “Where we go with this is probably a mix, because there are probably customers who want data to be controlled within our own data centers,” he added.

At present, Amazon is a Zacks Rank #2 (Buy) stock.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
MICROSOFT CORP (MSFT): Free Stock Analysis Report
 
SALESFORCE.COM (CRM): Free Stock Analysis Report
 
GENL ELECTRIC (GE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research