Amazon Forms Unit for Space Companies' Cloud Services

Amazon Web Services formed Aerospace and Satellite Solutions to provide cloud services to space-focused companies.
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Amazon  (AMZN) - Get Report Web Services unveiled Aerospace and Satellite Solutions, which will provide cloud-computing services to space-focused companies. 

The Aerospace and Satellite Solutions division will be led by Retired Air Force Maj. Gen. Clint Crosier, former director of space-force planning at the U.S. Space Force. 

"We find ourselves in the most exciting time in space since the Apollo missions," Crosier said in a statement. 

The new subsidiary will help facilitate the flow of data from space. The Seattle retailing and tech giant said the unit will make data flow "more accessible, more cost effective, and more actionable."

The company said AWS Ground Station, a fully managed service that gives satellite owners global access to their space workloads, "offers a hint" of what Aerospace and Satellite Solutions will provide. 

"Enabling customers to downlink data and provide satellite commands across multiple regions with speed and agility - and at a low cost - means satellite operators don’t have to own and manage duplicative ground station infrastructure," Amazon said in its statement. 

The news release announcing the creation of the segment featured testimonials from executives at Lockheed Martin LMT, geospatial intelligence company Geollect, and space technology company Maxar MAXR lauding AWS' space-data capabilities. 

Separately, on Tuesday Mizuho analyst James Lee raised the firm's price target on Amazon 22% to $3,100 from $2,550 while affirming a buy rating on the company. 

The price target represents 16% potential upside from the stock's Monday closing price. 

Lee says global e-commerce trends are still growing and cloud computing is positioned to benefit from the "health-care industry's accelerated adoption of cloud to lower IT costs for telemedicine and database management."

Amazon shares at last check rose 2.1% to $2,737.81.