Why Amazon.com, Inc. (NASDAQ:AMZN) Acquired 2lemetry?

Amazon.com, Inc. (NASDAQ:AMZN) acquired 2lemetry to move forward with its internet of things strategy. 2lemetry is a startup firm based out of Denver that has created an enterprise-focused platform to manage IP-enabled systems and other connected devices. It was established in 2011 and had generated $9 million out of which $4 million were raised from investors that comprised Salesforce Ventures. The terms of the acquisition are not disclosed.

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The details

2lemetry confirmed the acquisition of the company by Amazon and stated that it will continue to provide services to existing customers. Some of the customers are First Mile, the Demeter energy group, and Honeywell. On the other hand, Amazon didn’t respond to any question about the deal. The expectations are that it will be introduced into AWS, where the company has been trying to venture into the enterprise IoT space.

The measures

In 2013, Amazon introduced Kinesis platform to process and analyze high-traffic data streams from numerous sources and in real-time. It was the first time the company expressed its intention of entering into the IoT business. Now, with integration of 2lemetry’s technology and team, it would like to enhance the functionality of the platform and configure it for machine-to-machine deployments.

The services

2lemetry has been developing products for commercial deployments like retail environment. The distinguishing feature is its facial recognition technology that promotes environment changes and provides real-life analytics depending on the recognized gender and age of individuals. Talking about Amazon.com, Inc. (NASDAQ:AMZN), it wants to venture into physical commerce, and it is the second area where acquisition of 2lemetry’s team and technology would be useful. Amazon has been pushing its efforts to emerge strongly in IoT on the consumer front. The company also sells home automation hardware including thermostats and smart locks. Coupled with the efforts Amazon has put into Echo, the technology of acquired firm could make its way into a customer-focused service.

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John is a special projects and general assignment reporter, noted for breaking several exclusive stories.

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