Amazon.com, Inc. (AMZN) acquired Amiato for its skilled employees

Share on FacebookTweet about this on TwitterShare on Google+Share on RedditShare on LinkedInPrint this pageEmail this to someone

Amazon.com, Inc. (NASDAQ:AMZN) quietly added Amiato to its portfolio last year, a step that is seen as an effort by the online retailer to get its hands on the startup’s highly skilled employees. The acquisition will give Amazon access to an able team, behind a key data-migration technology, which is deemed useful for the company’s Web services business.

Amazon.com, Inc. (NASDAQ:AMZN) has not been able to disclose the financial terms of the deal with Amiato. However, people with insider knowledge of the matter have cited that the online retailer is more interested in the brains behind Amiato’s technology than anything else.

Amiato funders

The early backers of Amiato include Andreessen Horowitz, Data Collective and Ignition Partners. The startup received $2 million in financial backing from these investors and some others.

Bolstering Redshift

As part of Amazon, Amiato will be able to support the migration of data from various databases to Amazon’s online archiving service, known as Redshift. The team from Amiato has been deployed to Amazon’s cloud archiving platform according to various posts on professional network, LinkedIn Corp (NYSE:LNKD).

Small-scale cloud acquisitions

Amazon.com, Inc. (NASDAQ:AMZN) has chosen to grow its Amazon Web Services division organically, but the company also acquires startups to fill some niche gaps where necessary. Even in the acquisitions that the company makes in its cloud division, the deals are small scale and the list is short. Some of the names that Amazon has tapped to bolster its cloud arm include, the Internet of Things startup 2lemetry and an Israeli semiconductor company known as Annapurna Labs.

Amazon’s Web services have been around for nearly 10 years and the company has been aggressively expanding its cloud platform. The company does not currently break out revenue in its Web services arm, but hopes to start doing it when it reports its next quarterly results. However, the business unit where Web services sales are entered brought in $1.67 billion in revenue in the most recent quarter.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

You may also like...

More in AMZN
paypal
After eBay Inc Split, PayPal Might Be A Payment Option For Amazon.com, Inc. (AMZN)

Last week, eBay Inc (NASDAQ:EBAY) said that PayPal would be free to strike any understanding with any like-minded companies once...

Close