Why AWS gains big storage efficiencies with E8 acquisition

AWS is already the clear market leader in the cloud infrastructure market, but it’s never been an organization that rests on its past successes. Whether it’s a flurry of new product announcements and enhancements every year, or making strategic acquisitions.

When it bought Israeli storage startup E8 yesterday, it might have felt like a minor move on its face, but AWS was looking, as it always does, to find an edge and reduce the costs of operations in its data centers. It was also very likely looking forward to the next phase of cloud computing. Reports have pegged the deal at between $50 and $60 million.

What E8 gives AWS for relatively cheap money is highly advanced storage capabilities, says Steve McDowell, senior storage analyst at Moor Research and Strategy. “E8 built a system that delivers extremely high-performance/low-latency flash (and Optane) in a shared-storage environment,” McDowell told TechCrunch.