AWS Unveils AppFabric: An Exciting Product in Generative AI and Workflow Integration, Says Analyst

Needham analyst Laura Martin maintains Amazon.com Inc AMZN with a Buy, raising the price target from $120 to $150.

On Tuesday, AMZN's Cloud subsidiary, AWS, hosted an all-day AppFabric product launch. 

AppFabric is a new no-code AWS service that facilitates the integration of SaaS apps. AppFabric should lower AWS customer churn by increasing exit costs. 

The price target reflects higher AWS LTVs. 

Generative AI was the most exciting part of the 5-hour presentation. AppFabric stated it would launch an AI assistant by December 31, driven by LLMs (large language models) developed by AWS as part of its Bedrock platform. This AI assistant can directly convert email threads or Slack conversations into an Asana task list. Also, it will be able to combine content from different connected apps to make talking points for a presentation or even draft an email. 

The second most exciting part of the presentation was a research presentation about the future of work. The analyst was most intrigued by the ideas of tech exhaustion, data overload, and humans and bots on the same team working to solve problems together. 

AWS believes AppFabric will accelerate the ability of its clients to use generative AI as a whole team member to accomplish business goals faster. A key focus of the script and demos was how easy it was for clients to adopt AppFabric. 

Martin feels AppFabric is a "Hotel California" product - "You can check out any time you like, but you can never leave." 

AWS showed 2 case studies from Bank Leumi in Israel and Optibus to illustrate how AppFabric would simplify their business processes and lower their costs vs. using AWS in the past. 

AWS hosted panels with apps that will be embedded in AppFabric at launch, talking about use cases and how and why they aid productivity as part of AppFabric. 

AWS hosted several demos focused on how AppFabric maximizes data flow security compared with prior solutions that sent data between dozens of apps.

Price Action: AMZN shares traded higher by 0.92% at $130.37 on the last check Wednesday.

Photo by Tony Webster via Flickr