This Day On The Street
Continue to site
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

Amazon Brings WorkSpaces to the iPad (Update 1)

(Piece updated with AWS projections made by UBS analyst Eric Sheridan during the business' annual developers conference.)

NEW YORK ( TheStreet) -- Amazon Web Services (AMZN - Get Report) is positioning itself to capitalize on an increasingly mobile U.S. workforce, creating an app that will allow the utilization of its new desktop virtualization service through the iPad at competitive prices.

Amazon WorkSpaces was announced at last month's AWS re:Invent 2013 developer conference, and at that time, was accessible only from laptops, Android tablets and the Kindle Fire through Amazon's Appstore. Now, it's making itself available via iTunes on the iPad, which is among the devices experiencing wide deployment at corporations.

According to Apple (AAPL), 94% of Fortune 500 companies and more than 85% of the Global 500 enterprises are either testing the device for employee usage or are already in use by employees.

Amazon has expressed confidence in a fast-pickup of its desktop virtualization service, still in testing phase under limited accessibility among existing AWS customers. The company cited as a selling point the ability of the service to allow the customers to complete projects and key tasks for their jobs remotely while giving corporate IT departments the tools to efficiently manage data all within a secure cloud. Amazon also underscored Amazon WorkSpaces' competitive prices.

At last month's conference, AWS senior vice president and keynote presenter Andy Jassy emphasized that Amazon WorkSpaces is one of the most aggressively-priced desktop virtualization services around. The basic package that consists of remote computer processing power, memory, storage and Internet browsers begins at $35 every month per user. For $15 more, customers will be able to tap into antivirus features and Microsoft Office Professional on the virtual desktop. That cost is "half the price of what the typical virtual desktop infrastructure is today," said Andy Jassy.

Neither Citrix Systems (CTXS - Get Report) nor VMware (VMW - Get Report) shares were taking news of the Amazon WorkSpaces iPad announcement badly, even though the product invades into their territory. VMware gained 4.55% to $83.70 and Citrix Systems added 3.2% to $60.02 on the view that having a massive player like Amazon enter the desktop virtualization market might actually be an endorsement for the entire space, snuffing out some of the lingering skepticism about the costs associated with workforce mobilization and performance delays concerns tied to desktop virtualization.

If Amazon is able to deliver on its promise for easy to manage, secure workflow execution and management with its desktop virtualization product, the payoff could be significant. Factoring in Workspaces demand, in an earlier note, UBS analyst Eric Sheridan is already predicting that AWS' contribution to Amazon's revenue will grow to $8.2 billion by 2017 from about $3 billion in 2013 and approximately $2 billion in 2012.

Follow @atwtse

-- By Andrea Tse in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $502.13 0.00%
CTXS $63.95 0.00%
VMW $44.54 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs