EkaLore has studied and written about Amazon. It’s been one of our featured “Alien Invaders”, an overwhelming competitor that enters new markets leveraging its know-how, tech, and resources. Amazon may have started as a bookseller, but it has entered and done well in multiple sectors outside its original charter. It’s entered Health Care, developed a massive infrastructure and logistics capability, and created what is generally considered the world’s largest cloud computing business. It’s continuing to develop new lines and expand existing ones such as Kuiper (Satellite Communications), Health Care (more), and Amazon AI (and devices).
This array of services creates synergies or network effects. A great example of this is an industry that many don’t associate with Amazon, the Kuiper Division. It provides LEO (Low Earth Orbit) and MEO (Middle Earth Orbit) based communications. Its synergy with other parts of Amazon makes it a formidable “Alien Invader.”
Here’s a bit more about the Kuiper Division
Amazon started a service provider (Amazon Ground Station) it touted as a fully managed service supporting satellite operations. Operations might include satellite management and controls, satellite downlink, data processing, and data distribution.
These offerings have taken on greater value as the Ukraine conflict and USA DoD and NATO satellite data purchases become a large industry. The capability to ‘downlink’ satellite sensor-based data (radar imagery, multi-spectral sensing, radio/signal sensing, positioning, and navigation data) is acting as capable communication and networking infrastructure. Rocket launch ventures, satellite enterprises, government agencies, and communications/networking enterprises can leverage Amazon’s capital investment and infrastructure (Infrastructure as a Service [IaaS]) to purchase services instead of each repeating a buildout.
Consistent and effective bandwidth and network interconnection capacity and capabilities enable additional ‘network effects’ connecting launch capabilities, satellites, and satellite data buyers in even more efficient methods. “Cloud processing” for the data (including cloud-based Artificial Intelligence for pattern recognition, longitudinal analysis, machine learning purposes, mapping, and data distribution) increases the value in each step of the data value chain from on-orbit to data consumer.
The Amazon Kuiper orbiting communications satellites aren’t lacking a market. Just Amazon’s global facilities and 1.5M workers create a huge ‘captive’ market. If Kuiper pursues the same handset-to-satellite strategy being pursued by T-Mobile/Starlink and Apple (and others as EkaLore has talked about ) this could create daily demand (bandwidth and users) rivaling the customer list and volumes of other satellite providers even without additional commercial and individual customers that are interested on a global basis.
The tie to Blue Origin is of note. The Kuiper satellite constellation will be launched on Blue Origin rocket engines by Blue Origin and ULA. Other launches are booked with Arianespace. The number of required rocket engines is not yet known exactly and will be substantial.
The satellite business runs on and is dependent on Amazon Web Services to achieve its operational goals. Amazon’s Kinesis Data Streams are used to manage real-time data ingestion from satellite downlinks. Amazon SageMaker AI can be used to process the datasets. Taken together with other AWS services, database services, high bandwidth linkages, and compute power this provides a clear competitive position for Infrastructure as a Service for Satellite infrastructure.
EkaLore’s Alien Invader framework lists the ingredients for success as having the know-how (people, processes), the resources ($$$), and the tech. Amazon’s got all three of these, but because it’s not just an Alien Invader, but a colossal Alien Invader, these elements provide a powerful network effect. With it, Amazon doesn’t have to build up the platform infrastructure, it’s already there. Integrating more services is practically frictionless. Hyperscale operations can be spun up on demand. For customers that need exponential expansion, you don’t build out another ground station, it’s already there.
If you’d like to read more pieces about the Alien Invader Framework, you can find them here at www.ekalore.com/alien-invader
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