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Kinesis Data Streams is primarily designed for collecting and processing data in real time. It allows you to ingest large streams of data from various sources and process it as it arrives, enabling low-latency processing and real-time analytics. This is particularly useful in scenarios where timely insights from data are crucial, such as in fraud detection, log and event data processing, and real-time monitoring of application data.

The capability to handle real-time data ingestion means that organizations can react to data as it occurs, improving decision-making and operational responsiveness. Kinesis provides features for scaling data throughput and ensures that data is durable and available for processing.

While building serverless applications, storing large amounts of data, and monitoring application performance are important tasks in a cloud environment, they do not accurately describe the primary function of Kinesis Data Streams. Its core strength lies in the ability to capture and process streaming data efficiently.