This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Amazon Locks Up Data With Cloud VPN

SEATTLE, Wash. ( TheStreet) -- With interest in cloud computing growing, Internet giant Amazon (AMZN - Get Report) is attempting to make the technology more secure by offering VPN-based access to its services.

Cloud services, which offer compute power or data storage via the Internet, have become one of the hottest parts of the tech sector, with companies such as Amazon, Microsoft (MSFT - Get Report) and IBM (IBM - Get Report) all pushing the technology as a way for firms to avoid the upfront costs of hardware and software.

There are, however, some question marks still hanging over the cloud concept. Security and loss of data control, for example, are often cited as the biggest cloud issues.

Amazon claims to have the answer to these concerns, with its Virtual Private Cloud (VPC) offering. By using a Virtual Private Network (VPN) to link users to the company's cloud offerings, the Seattle-based firm says that it can offer a secure bridge to customers' data.

Initially offered for Amazon's EC2 cloud computing offering, Amazon will eventually extend VPC to other Web services such as its S3 storage cloud.

"VPC shows that Amazon wants to dominate cloud infrastructure services, not only for Web-facing applications and IT services for start-ups, but also for enterprise cloud computing," wrote Ezra Gottheil, an analyst at TBR, in a note released Wednesday. "This move is an imminent threat to IT vendors currently building up cloud services portfolios as rapidly as they can."

The VPN-based cloud, however, may also provide a boost to Amazon's partners such as BMC (BMC) and CA (CA - Get Report), whose systems management software can manage applications in the cloud. VPN giant Citrix (CTXS - Get Report) has also thrown its weight behind VPC, clearly aiming to exploit users' growing demand for cloud services.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs