Amazon.com, Inc. (AMZN) Set To Dominate Internet of Things
Jon Markman: After a tough 2014, Amazon.com, Inc. (NASDAQ:AMZN) has been on a roll all year. The company just announced its second surprise quarterly profit last week.
The stock price has nearly doubled for the year to date. Founder and CEO Jeff Bezos is now the third-richest American.
Despite flops like the Fire Phone, with its overhyped but underwhelming “3D screen” feature, the company is laying the groundwork for continued success as it continues to evolve.
From books to the dominance of online retail via scaled warehousing and logistics, to rolling its online presence into its wildly successful Amazon Web Services cloud platform, the next step is harnessing its cloud-based computing infrastructure to become the dominant platform for the Internet of Things (IoT).
And among the many companies fighting to become the ecosystem provider for connected smart devices — as Microsoft (MSFT) did for PCs and Apple (AAPL) did for mobile computing — AMZN has a head start thanks to its proven and inexpensive offering.
Now’s the time to act: As shown in the chart below, taken from the latest “hype cycle” analysis from researchers at Gartner, IoT platforms are still in the first “Innovation Trigger” phase.
The battle for dominance still has, in their estimation, another five to 10 years to run.
The Hype Cycle
Earlier this month, AMZN announced a partnership initiative to create an IoT platform with relevant supply-chain, hardware and semiconductor companies, giving them access to cloud-based AWS (Amazon Web Services) processing horsepower.
These services operate from 11 geographical regions across the world.
Companies in the partnership include Arrow (ARW),Avnet (AVT), Broadcom (BRCM), Intel (INTC), Marvell (MRVL), Microchip (MCHP), Qualcomm (QCOM), and Texas Instruments (TXN) among others.
Amazon’s existing in-house experiments with IoT are well known, such as the “Dash Button”that automatically reorders your baby food or paper towels at a press.
But this AWS IoT initiative is much bigger and bolder, trying to dominate the next phase of technology growth by harnessing its computing resources along with efforts like Amazon Machine Learning to make connected devices smart, fast, and secure.