Amazon’s (AMZN) shares edged lower early Tuesday despite the e-commerce giant deepening its ties with Aveva, the British industrial software company owned by France’s Schneider Electric (SBGSY). Both companies have entered a multi-year agreement “to accelerate the delivery of industrial intelligence in the cloud.”
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High conviction AMZN bears now have this Tradr ETFAs part of the deal, Amazon Web Services, Amazon’s cloud computing unit, will work together with Aveva to jointly develop technology for industrial automation. Aveva will also integrate its CONNECT industrial intelligence platform into AWS’s infrastructure.
Aveva to Tap into Amazon’s AI Infrastructure
The goal of the integration is to tap into Amazon’s AI and machine learning offerings to deliver advanced predictive analysis, digital twin capabilities, and autonomous AI workflows for industrial operations. This will help customers to “design faster, operate smarter, and optimize continuously,” noted Rob McGreevy, Aveva’s chief product officer.
As part of the collaboration, Aveva will expand its presence on the AWS Marketplace by listing key products. Both firms will also work together to help customers modernize their workloads and move them to AWS, with migration funding provided.
Amazon Doubles Down on Industrial Intelligence Push
Furthermore, the organizations will provide a network of specialized operational technology system specialists to help joint customers deploy, configure, and maintain their industrial software. Aveva said its software is used by over 20,000 organizations scattered across more than 150 countries.
“By bringing CONNECT and the broader AVEVA portfolio to AWS, the two companies aim to give industrial customers a faster, more scalable path to cloud-native operations, reducing the complexity and cost of managing on-premises infrastructure while enabling new AI-driven capabilities that were previously impractical at scale,” Aveva said in a statement.
The move represents Amazon’s latest push in industrial intelligence. In 2022, the company launched the $1 billion Amazon Industrial Innovation Fund and has since invested in several companies with promising technologies.
Is Amazon a Buy or Sell Right Now?
On Wall Street, Amazon’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 45 Buys and one Hold issued by 20 analysts over the past three months.
In addition, the average AMZN price target of $318.23 suggests about 20% upside from the current trading levels.
