Amazon.com, Inc. (NASDAQ:AMZN)’s AWS Enters The Field Dominated By GoDaddy (GDDY) and Symantec (SYMC)


Amazon.com, Inc. (NASDAQ:AMZN) is expanding into the digital certification space through its cloud arm Amazon Web Services (AWS). The move by Amazon challenges the positions of Godaddy Inc (NYSE:GDDY) and Symantec Corporation (NASDAQ:SYMC), which make money from offering digital certification.

As for Amazon.com, Inc. (NASDAQ:AMZN), the move into certification business appears to be less about making direct revenue from the offering but more about improving the appeal of AWS. Amazon’s AWS and Microsoft Corporation (NASDAQ:MSFT)’s Azure cloud are vying for the control of the cloud computing business and they are trying to outdo each other in various ways. Richness of cloud features is one area AWS and Azure are competing. Perhaps Amazon is betting that giving digital certification to developers free of charge would encourage them to stick with the platform and also woo other developers from rival platforms.

Certificate authority

As a certificate authority (CA), Amazon’s digital certification offering will capture Transport Layer Security/Secure Sockets Layer (TLS/SSL) certificates. Initially, Amazon’s digital certification will be offered to customers in the East-North Virginia region. However, the company is working to capture more U.S. regions.

Free with AWS

Although Amazon’s digital certificates are available free of charge, you must be a user of AWS to take advantage of them. Additionally, Amazon’s certificates are not only initially limited in terms of geography, but also in terms of scope. For example, Amazon’s certificates lack support for what is called Perfect Forward Secrecy. Additionally, you do not get Extended Validation certificates with the Amazon digital certification offer. It is Extended Validation that shows you the company name in green text in the URL bar.

Benefit of improved ranking

However, for developers using AWS, the Amazon.com, Inc. (NASDAQ:AMZN) digital certificates would be a great way to boost search engine ranking. Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL)’s Google uses certificate as a factor in website rankings.

With the digital certification offering, Amazon may have just opened another competitive frontier with cloud rivals Microsoft, Google and Oracle Corporation (NYSE:ORCL) among others.

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.

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