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Amazon's (AMZN) AWS Gets Selected by Abdul Latif Jameel

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Amazon (AMZN - Free Report) continues to ride on strengthening its Amazon Web Services ("AWS") offerings, which are constantly driving its cloud customer momentum.

The latest selection of AWS by Abdul Latif Jameel as the preferred cloud provider is a testament to the aforesaid fact.

Abdul Latif Jameel will build an AWS-supported analytics, machine learning and generative AI program in a bid to power its digital transformation by developing new applications across a wide range of industries, such as mobility, energy, health and financial services.

More precisely, it plans to use Amazon Simple Storage Service and AWS Lake Formation to ingest and secure its financial data.

It aims to develop generative AI applications for car manufacturers by leveraging Amazon Bedrock.

Abdul Latif Jameel is shifting its on-premises information technology workloads to AWS in order to boost its decarbonization goals and reduce carbon footprints.

We note that the latest move by Abdul Latif Jameel has added strength to the customer base of AWS.

The deal is expected to support Amazon’s zero carbon footprint goals as Fotowatio Renewable Ventures, which is a part of Abdul Latif Jameel Global Energy and Environment Holding Company, will provide clean energy to power AWS operations.

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Amazon.com, Inc. Price and Consensus

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Portfolio Strength: Key Catalyst

The recent selection of AWS by Abdul Latif Jameel highlights the efficiency and reliability of AWS's innovative cloud products and services. AWS’s focus on enhancing its offerings is likely to drive its customer momentum.

AWS recently expanded Amazon Bedrock, which is a fully managed foundation model (FM) service. It added Cohere as an FM provider to Bedrock. It also added the latest FMs from Anthropic and Stability AI, namely Claude 2 and Stable Diffusion XL 1.0, respectively, to Bedrock. These advancements will further ease the process of building and scaling generative AI applications.

The company announced the general availability of AWS Entity Resolution, which enables organizations to analyze, match and link related records stored across various applications, channels, and data stores seamlessly.

It also unveiled a new HIPAA-eligible service called AWS HealthScribe, which is powered by speech recognition and generative AI technology. The service is designed to create preliminary clinical documentation from patient-clinician conversations automatically.

Expanding Customer Base

We believe that the expanding AWS portfolio will continue to aid AWS in winning customers.

Apart from Abdul Latif Jameel, AWS was recently selected by FanDuel as the strategic cloud provider. FanDuel will leverage AWS’s cloud computing infrastructure to expand across the United States and Canada efficiently.

AWS was picked by the BMW Group as the preferred cloud provider. With the help of AWS’s compute, generative artificial intelligence, Internet of Things, machine learning and storage capabilities, BMW Group strives to power its automated driving platform.

It was also selected by Dr. Reddy’s Laboratories as the preferred cloud provider. Dr. Reddy’s shifted its SAP platform to AWS in a bid to boost the development of advanced healthcare applications. It strives to reduce application development time by 30%.

Additionally, Occidental (OXY - Free Report) chose AWS as its preferred cloud provider to boost operational efficiencies and eliminate upfront capital expenditures.

Occidental plans to transfer its core production applications and on-premises information technology infrastructure to AWS to accelerate its digital transformation and the development of systems for carbon removal plants.

Sumitomo selected AWS to drive its digital transformation by migrating its SAP environments to AWS. It plans to upgrade its SAP environment to SAP S/4HANA on AWS.

To Conclude

We note that expanding clientele will likely drive AWS’s top-line growth in the near term as well as continue to aid its cloud dominance against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.

Our model estimate for 2023 AWS revenues is projected at $91.6 billion, indicating growth of 14.4% from 2022.

Per the latest Canalys report, AWS accounted for 30% of global cloud spending in second-quarter 2023, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud service provider, accounted for 26% of the worldwide cloud spending, while Alphabet’s Google Cloud represented 9% of the cloud spending, making it the third-largest cloud provider.

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

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