Amazon’s (AMZN Quick QuoteAMZN - Free Report) cloud-computing arm, Amazon Web Services (AWS), made its Graviton3 processor-backed Amazon Elastic Compute Cloud (Amazon EC2) C7g instances generally available.

Notably, C7g instances offer enhanced performance to customers for their compute-intensive workload.

Arm-based AWS Graviton3 processors deliver up to three times better performance for machine learning workloads compared with the company’s last-generation chips — AWS Graviton2 processors.

Graviton3 offers up to two times higher floating-point performance for scientific, machine learning, and media encoding workloads. It further provides up to two times faster performance for cryptographic workloads.

Consequently, C7g instances deliver 25% better performance than Graviton2 processor-backed C6g instances.

Customer Base to Expand

We believe that the latest move will help AWS gain strong momentum among customers in this data-driven world.

Customers like Snap, Sprinklr, NextRoll, Ansys and Beamr have already shown interest in Amazon EC2 C7g instances.

We believe that the growing customer momentum will continue to drive AWS’s top line. Strengthening clientele will continue to aid its dominance and competitive edge against its strong peers like Microsoft (MSFT Quick QuoteMSFT - Free Report) and Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Google.

Apart from the customer interest in the new service, AWS was picked by Boeing (BA Quick QuoteBA - Free Report) as the strategic cloud provider.

In a bid to bring advancement in aerospace design and manufacturing, Boeing will migrate its applications from on-premises data centers to AWS. Further, Boeing will leverage AWS’s scalable, robust, and high-performing infrastructure and cloud services, including high-performance computing.

Notably, the growing customer momentum is expected to continue aiding AWS’s market position.

According to the latest Canalys report, AWS accounted for 33% of the global cloud spending in first-quarter 2022, sustaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud-service provider, accounted for 21% of the worldwide cloud spending. Alphabet’s Google Cloud represented 8% of the cloud spending, marking itself the third-largest cloud provider.

Portfolio Strength

The latest move bodes well for the growing efforts of AWS toward expanding its product and services portfolio.

Apart from the latest move, Amazon recently announced the general availability of AWS IoT TwinMaker, which helps in the quick creation of digital twins of devices, equipment and processes.

It made its new visual development environment — AWS Amplify Studio, which enables web application user interface creation with minimal coding — generally available.

Additionally, it announced the general availability of Amazon Aurora Serverless v2, which automatically scales hundreds of thousands of transactions in a fraction of a second.

To Conclude

We believe that the strengthening portfolio, along with expanding data centers and cloud region, will continue to aid Amazon in winning clientele in the booming cloud market.

However, Amazon, which carries a Zacks Rank #5 (Strong Sell) at present, is currently facing stiff competition from Microsoft and Alphabet.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Notably, Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Notably, 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.