Amazon (AMZN - Get Report) today launched a new tool to help large companies move their data onto its cloud computing platform, Amazon Web Services (AWS), giving it another leg up in a competitive market.
As more and more companies choose to move their data onto a cloud platform, Amazon is looking to meet that demand and make AWS more attractive compared to its competitors from Microsoft (MSFT - Get Report) , Salesforce (CRM - Get Report) , Oracle (ORCL - Get Report) , Rackspace (RAX) and Google (GOOG - Get Report) .
Moving data onto a cloud platform can take as long as two years for companies with $100 million or more in annual revenue, Gartner analyst Lydia Leong told the Wall Street Journal. It can require rewriting the software that analyzes their data and then testing that work. The AWS Database Migration Service aims to ease the process and save companies time and energy.
"The simpler that AWS makes it to transition to cloud, the more enterprises will consider leveraging AWS to move current systems of record to the cloud," said Forrester analyst Robert Stroud.
And more enterprises on AWS means more revenue for Amazon.
"If you're a prospective cloud customer, I think this is a strong selling point for AWS," said Morningstar analyst RJ Hottovy. "This is one of the key assets to the overall Amazon business and will become more important in the years to come as the business grows."
As of the third quarter in 2015, Amazon held a market share of 36.9% of the cloud computing market, according to Goldman Sachs. Microsoft and Salesforce held the next two spots with 8.7% and 4.7%, respectively.
Amazon has a nice head start, Hottovy explained. And the new Database Migration Service is just one more selling point for AWS.
According to a February survey from International Data Corp., 58% of companies planned to use cloud services for more than two applications, up from 24% 14 months earlier.
The demand is clearly there, and a tool like AWS Database Migration Service could be the deciding factor as companies choose which platform to use.
AWS vice president Adam Selipsky told The Wall Street Journal that "many hundreds" of companies have used an earlier version of the new tool to migrate more than 1,000 databases. "You can clearly see that we're now getting into the meat of enterprise adoption of the cloud," he told The Journal.
Last week, Microsoft said the next version of its own database program would include a similar tool. But Amazon's head start and experience should continue to pay off, according to Hottovy.