We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amazon's (AMZN) AWS Gets Selected by Boeing, Boosts Clientele
Read MoreHide Full Article
Amazon (AMZN - Free Report) continues to ride on its robust cloud computing arm, Amazon Web Services ("AWS"). Strengthening AWS offerings, which are constantly driving the company's cloud customer momentum, remain the key catalysts.
The latest selection of AWS by Boeing (BA - Free Report) as the strategic cloud provider is a testament to the aforesaid fact. This highlights the efficiency and reliability of AWS's innovative cloud products and services.
The deal has strengthened the existing relationship between Amazon and Boeing.
In a bid to bring advancement in aerospace design and manufacturing, Boeing will migrate its applications from on-premise data centers to AWS.
Boeing will leverage AWS’s scalable, robust, and high-performing infrastructure and cloud services, including high-performance computing, to support its new as well as existing application. This will aid product innovation and efficiency in its operation.
The latest move of Boeing has added strength to the customer base of AWS.
We believe that AWS's persistent focus on enhancing its offerings will continue to expand its clientele.
Apart from Boeing, AWS recently got selected by Maple Leaf Sports & Entertainment as the official provider of AI, ML and deep learning cloud services. Maple Leaf will leverage AWS’s robust cloud capabilities to support its teams and lines of business.
Best Buy picked AWS as its preferred cloud provider for cloud infrastructure services and its strategic partner for developing cloud engineering talent.
We believe that the expanding customer base will continue to drive AWS’s top line. In fourth-quarter 2021, AWS generated revenues of $17.8 billion (13% of Amazon’s net sales), which rose 40% year over year.
To Conclude
We believe that AWS’s expanding portfolio, data centers and cloud region will continue to aid Amazon, currently carrying a Zacks Rank #3 (Hold), in gaining a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.
Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Azure's increasing number of availability zones and regions globally, along with strength in its consumption-based business, is likely to continue driving Microsoft's cloud momentum in the near term.
Similarly, Google Cloud is contributing substantial growth to the total revenues of Alphabet. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.
Nevertheless, AWS, with a solid customer momentum, continues to maintain its dominant position in the cloud market.
Per the latest Canalys report, AWS accounted for 33% of the global cloud spending in fourth-quarter 2021, while Microsoft Azure and Google Cloud accounted for 22% and 9% of the total cloud spending worldwide, respectively.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Amazon's (AMZN) AWS Gets Selected by Boeing, Boosts Clientele
Amazon (AMZN - Free Report) continues to ride on its robust cloud computing arm, Amazon Web Services ("AWS"). Strengthening AWS offerings, which are constantly driving the company's cloud customer momentum, remain the key catalysts.
The latest selection of AWS by Boeing (BA - Free Report) as the strategic cloud provider is a testament to the aforesaid fact. This highlights the efficiency and reliability of AWS's innovative cloud products and services.
The deal has strengthened the existing relationship between Amazon and Boeing.
In a bid to bring advancement in aerospace design and manufacturing, Boeing will migrate its applications from on-premise data centers to AWS.
Boeing will leverage AWS’s scalable, robust, and high-performing infrastructure and cloud services, including high-performance computing, to support its new as well as existing application. This will aid product innovation and efficiency in its operation.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Expanding Customer Base
The latest move of Boeing has added strength to the customer base of AWS.
We believe that AWS's persistent focus on enhancing its offerings will continue to expand its clientele.
Apart from Boeing, AWS recently got selected by Maple Leaf Sports & Entertainment as the official provider of AI, ML and deep learning cloud services. Maple Leaf will leverage AWS’s robust cloud capabilities to support its teams and lines of business.
Best Buy picked AWS as its preferred cloud provider for cloud infrastructure services and its strategic partner for developing cloud engineering talent.
We believe that the expanding customer base will continue to drive AWS’s top line. In fourth-quarter 2021, AWS generated revenues of $17.8 billion (13% of Amazon’s net sales), which rose 40% year over year.
To Conclude
We believe that AWS’s expanding portfolio, data centers and cloud region will continue to aid Amazon, currently carrying a Zacks Rank #3 (Hold), in gaining a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Azure's increasing number of availability zones and regions globally, along with strength in its consumption-based business, is likely to continue driving Microsoft's cloud momentum in the near term.
Similarly, Google Cloud is contributing substantial growth to the total revenues of Alphabet. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.
Nevertheless, AWS, with a solid customer momentum, continues to maintain its dominant position in the cloud market.
Per the latest Canalys report, AWS accounted for 33% of the global cloud spending in fourth-quarter 2021, while Microsoft Azure and Google Cloud accounted for 22% and 9% of the total cloud spending worldwide, respectively.