Shares of satellite network company Iridium Communications (NASDAQ: IRDM) got another bump recently after a new deal was announced with Amazon 's (NASDAQ: AMZN) Web Services segment. The new agreement, which makes Iridium a new member of the AWS Partner Network, is big news -- especially for Iridium as it finishes up the deployment of its new satellite constellation this year. Cloud-computing like that offered by AWS is a high-growth industry, so Iridium's new CloudConnect could be instrumental to the satellite service provider's plans in the coming years.
Iridium's new satellite constellation, dubbed Iridium NEXT, is almost complete. The eighth and final launch is expected to go by year end via SpaceX, completing the 66 satellite array that will cover every corner of the globe with voice and broadband-speed internet and data service.
With a date of completion in sight, Iridium has been adding new customers ahead of the new service's launch, especially in the Internet of Things (IoT) space. As the only communications provider with global coverage, Iridium can cater to the needs of a diverse customer base ranging from government entities and multinational organizations to the maritime and aviation industries. The company's work on the new CloudConnect service aims to capitalize on IoT growth. According to research from IHS Markit, the number of connected devices around the globe is expected to roughly triple to over 75 billion by 2025.
CloudConnect will make use of AWS, Amazon's hosted cloud-computing platform. It will enable companies building out IoT capabilities on AWS to extend their reach. Iridium CEO Matt Desch explained the service, which will be available in 2019, this way: