Market Overview

Amazon Steals The Show At Enterprise Connect Expo

Amazon Steals The Show At Enterprise Connect Expo
Related AMZN
Visualizing the Insane Growth of the "Internet of Things"
What Could The Catalyst For Nike Be This Fiscal Year?
S&P 500 Futures: Expect These 3 Top Techs To Move; 2 Opticals Near Buys (Investor's Business Daily)
Related BSFT
Benzinga's Top Upgrades, Downgrades For April 11, 2017
Mid-Morning Market Update: Markets Mostly Higher; Hormel Foods Profit Misses Views

William Blair's Bhavan Suri attended the Enterprise Connect Expo and the main takeaway of the event was, Inc. (NASDAQ: AMZN)'s release of its virtual contact center, Amazon Connect.

Suri commented in a research report on Friday that Amazon Connect is a self-service contact center solution designed to get call centers up and running quickly. The analyst added that since the product is a cloud-based offering, its users can scale their usage as needed which will be much appreciated among companies who have seasonality in their business.

"We believe its usage-based business model is compelling from a total cost of ownership perspective, especially when compared with on-premises systems," the analyst stated.

'Large Market Opportunity'

Suri believes Amazon's entrance into the space "validates the large market opportunity," but it is a low-end market play since it can be used by organizations of any size. But since Amazon's technology can also support large-scale contact center deployments with complex call routing requirements the analyst suggested that the company's objective is to ultimately replace legacy, on-premises contact center systems.

As such, companies including Five9 Inc (NASDAQ: FIVN), BroadSoft Inc (NASDAQ: BSFT) and inContact are most at risk from Amazon's new offering. On the other hand, the analyst suspects that Amazon is leveraging Twilio Inc (NYSE: TWLO)'s platform, which is positive as it should expand Twilio's relationship with Amazon beyond its Simple Notification Service.

Related Links:

Amazon Gets New Buy Rating, $1,100 Price Target At Loop Capital

What It Means For Twilio That Lyft Went Shopping For A Second Vendor
Image Credit: By Unknown - Transferred from de.wikipedia to Commons using CommonsHelper., Public Domain, via Wikimedia Commons

Latest Ratings for AMZN

Apr 2017BenchmarkReiteratesBuyBuy
Apr 2017Pacific CrestDowngradesOverweightSector Weight
Apr 2017Raymond JamesDowngradesOutperformMarket Perform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Amazon Amazon ConnectAnalyst Color News Events Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (AMZN + BSFT)

View Comments and Join the Discussion!