Ovum takes deep dive into Amazon smart home strategy

A new Ovum study shows how Amazon can monetise its smart home supremacy, something all other players have thus far failed to do.

Amazon has crafted a comprehensive strategy that propels its core e-commerce business through AI and smart home devices and services. Meanwhile, the continued expansion of its ecosystem of partners and developers through multiple tools and incentives has helped make Alexa a key enabler of smart living.

"To gain ubiquity across different platforms and environments, Amazon is constantly experimenting with Alexa, trying to find new ways to make money while enhancing the customer experience,” Ovum observes.“It understands that the ecosystem plays a key role in Alexa's development. However, it is still early days for the ecosystem to take advantage of the potential of Alexa as a vehicle to make money.”

“Our report shows how the e-commerce giant is making progress on this front, not only by promoting skill usage among customers, but also guaranteeing that users remain engaged so that the ecosystem can start profiting from Alexa in a more consistent manner," says Mariana Zamoszczyk, Senior Analyst of Ovum's Consumer Services team.

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