Amazon announces E-mail service

Amazon WorkMailAmazon has announced an email and scheduling service that will compete with Microsoft and Google.

The service, dubbed WorkMail, will launch in the second quarter and has been developed by the company’s cloud computing unit, Amazon Web Services (AWS). It highlights Amazon’s efforts to convince deep-pocketed companies, called enterprises in tech parlance, to shift more of their work to AWS.

Its is the first step toward a broader suite of Amazon tools to gain corporate clients, analysts said. For example, Google’s Gmail offers many other services beyond email and calendars including file-sharing and video conferencing.

“Email is a Trojan Horse into the enterprise,” Baird analyst Colin Sebastian said. He added that email is a $1 billion opportunity for Amazon given the popularity of AWS and Amazon’s willingness to sacrifice margins for volume. If Amazon adds more services for companies, it could bring in about $10 billion more in extra revenue, Sebastian said.

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