Amazon is on the acquisitions trail again, this time looking to pick up an Israeli semiconductor firm, Annapurna Labs. The company produces specialised chips that improve the speed of data traffic while running in power-efficient compute environments. With Amazon keen on its green enterprise credentials, that should also help reduce power costs within its data centres. The deal, when completed, subject to the usual regulatory requirements, will help Amazon improve the performance across its AWS cloud systems, and help reduce latency across the networks.

That has to be good news for AWS users when the processors or underlying technology are eventually integrated into Amazon’s AWS custom hardware. The deal is reported in the Israeli press to be around $370 million. It once again shows how Amazon will search far and wide for the smallest components that go some way to improving AWS performance. With increasing numbers of businesses turning to AWS for cloud computing power and performance, and with their demands for performance becoming ever higher, Amazon needs to keep pushing the limits of hardware, network and software.

Annapurna Labs is one of those annoying companies that has been operating in stealth mode. It has a Twitter page, but never posts, a pretty website with nothing of note on it, and no real clue about what’s inside its technology. As with many of these deals, we’ll likely never know when the AWS hardware upgrades take place. However, it is yet another demonstration that Amazon will keep investing to get the best and brightest people, and the components they produce, to keep the AWS dashboards showing green.

With Amazon recently launching AWS Lambda for ad hoc and automated applications and instances, the company can expect a growing volume of spikes in activity, beyond the usual buckets of information passing across the system. Its future hardware will need all the speed and flexibility it can get, across all regions from Singapore to San Jose, to cope with the demand. Expect further acquisitions by Amazon to keep picking up the best tech to AWS, as it looks to maintain an edge over the cloud competition.

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