Amazon strives to strengthen web services business by acquiring businesses.
Amazon announced in recent times that an Italian ‘Software as a Service’ (SaaS) company, NICE, which makes products for clients to centralize and optimize their visualization workloads and high performance computation. In September 2015, the ecommerce company had purchased backend mobile video service, Elemental Technology, at a price of $500 million to strengthen its cloud infrastructure facilities provided by its web facilities unit.
Forbes estimated that Amazon Web Services contributes to almost 30% of its value and is organization’s most profitable unit. Strategic takeovers to strengthen this unit’s offerings are essential to retain and attract clients, increase revenues and have a positive impact on the company’s valuation.
Recently, Ericsson announced an international services, technology and business alliance with AWS to speed up cloud transformation for telecommunication service providers. This must add to the revenues of AWS and act as a catalyst for expansion of its telecom cloud industry, provided Ericsson’s huge customer base.
Although NICE is a niche business, its offered service, Desktop Cloud Visualization software, offered game designers and 3D developers to work remotely from every type of product.
The acquired software will allow the Seattle based organization to improve its offered services for customers with high CPU performance requirement, such as 3D developers. In addition to this intellectual property, the online retailer will also reach European customers of NICE, which has clients in sectors ranging from utilities to aerospace and energy.
NICE boasts customers like Chevron, Yale University, Toyota and Airbus. Constellation Research revealed that AWS stands to get much from this agreement and the attained intellectual property, which has equipped it with the capacity to add to entire Amazon marketplace through specific fresh functionality.
Ericsson said it is collaborating with Amazon’s cloud service for telecommunication service providers to seize opportunities like big data analytics and IoT to use the recently introduced technologies and enhance efficiency and productivity. In its collaboration with AWS, the Swedish tech company expects to converge mobile cloud and infrastructure, and offer new capabilities to service providers and app developers to speed up innovation.
Ericsson is developing an international expert team, which is not only focusing on AWS cloud but also setting up cloud innovation centers with clients. Fortune believes that this tie up will add to the revenues of AWS as its customers adapt to this new offering.
According to the partnership, Ericsson has also planned to develop solutions for service providers to develop and enhance capacities.
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