Correct option:
Amazon Kinesis with Amazon Simple Notification Service (SNS) - Amazon Kinesis makes it easy to collect, process, and analyze real-time, streaming data so you can get timely insights and react quickly to new information. Amazon Kinesis offers key capabilities to cost-effectively process streaming data at any scale, along with the flexibility to choose the tools that best suit the requirements of your application.
With Amazon Kinesis, you can ingest real-time data such as video, audio, application logs, website clickstreams, and IoT telemetry data for machine learning, analytics, and other applications. Amazon Kinesis enables you to process and analyze data as it arrives and respond instantly instead of having to wait until all your data is collected before the processing can begin.
Kinesis will be great for event streaming from the IoT devices, but not for sending notifications as it doesn't have such a feature.
Amazon Simple Notification Service (SNS) is a highly available, durable, secure, fully managed pub/sub messaging service that enables you to decouple microservices, distributed systems, and serverless applications. Amazon SNS provides topics for high-throughput, push-based, many-to-many messaging. SNS is a notification service and will be perfect for this use case.
Streaming data with Kinesis and using SNS to send the response notifications is the optimal solution for the current scenario.
Incorrect options:
Amazon Simple Queue Service (SQS) with Amazon Simple Notification Service (SNS) - Amazon Simple Queue Service (SQS) is a fully managed message queuing service that enables you to decouple and scale microservices, distributed systems, and serverless applications. SQS eliminates the complexity and overhead associated with managing and operating message-oriented middleware and empowers developers to focus on differentiating work. Using SQS, you can send, store, and receive messages between software components at any volume, without losing messages or requiring other services to be available. Kinesis is better for streaming data since queues aren't meant for real-time streaming of data.
Amazon Kinesis with Simple Email Service (Amazon SES) - Amazon Simple Email Service (Amazon SES) is a cloud-based email sending service designed to help digital marketers and application developers send marketing, notification, and transactional emails. It is a reliable, cost-effective service for businesses of all sizes that use email to keep in contact with their customers. It is an email service and not a notification service as is the requirement in the current use case.
Amazon Kinesis with Simple Queue Service (SQS) - As explained above, Kinesis works well for streaming real-time data. SQS is a queuing service that helps decouple system architecture by offering flexibility and ease of maintenance. It cannot send notifications. SQS is paired with SNS to provide this functionality.
References:
https://aws.amazon.com/sns/
https://aws.amazon.com/kinesis/
https://aws.amazon.com/ses/
https://aws.amazon.com/sqs/