Back to top

Image: Bigstock

Amazon's Carrier Deal Highlights Reliability of AWS Portfolio

Read MoreHide Full Article

Amazon (AMZN - Free Report) continues to ride on its robust cloud computing arm — Amazon Web Services (AWS). Moreover, strengthening AWS offerings,which are constantly driving the company’s cloud customer momentum,remain the key catalysts.

The latest multi-year agreement between AWS and Carrier Global (CARR - Free Report) is the testament to the aforesaid fact.

Per the deal, Carrier will develop its new Lynx digital platform with AWS by leveraging the latter’s IoT, analytics and Machine Learning (“ML”) services.

Notably, the Lynx platform will provide actionable intelligence, enhanced connectivity and improved visibility to customers across their cold chain operations.

The latest deal strengthens AWS’ relationship with Carrier, which selected the former as the preferred cloud services provider at the beginning of this year.

Portfolio Strength: Key Growth Driver

We note that the latest deal highlights theefficiency and reliability of AWS’ innovative cloud products and services, which have been contributing well to Amazon’s top-line growth for the past many years.

The utilization of AWS’ IoT services on the Lynx platform will help in collecting, integrating, organizing and analyzing data from Carrier’s large installed base of refrigeration equipment and monitoring solutions.

Further, the company will be leveraging Amazon Simple Storage Service for the new platform for utilizing ML services on it.

Hence, we believe that Amazon’s growing efforts to expand the AWS portfolio will continue to help it in acquiring clients in the near term as well as in the long run.

Recently, Jack in the Box went all-in on AWS by migrating from its on-premises data centers to the latter.

Further, AWS got selected by HSBC Holdings as a key, long-term cloud provider. HSBC by migrating to AWS will automate key processes and boost operational efficiency.

IHS Markit also selected AWS as its preferred cloud infrastructure provider. Additionally, Capella Space went all-in on AWS., Inc. Revenue (TTM), Inc. Revenue (TTM), Inc. revenue-ttm |, Inc. Quote

Intensifying Cloud Competition

Expanding clientele will continue to bolster Amazon’s footprint in the booming cloud market. Notably, Amazon holds a dominant position in this market.

However, competition in this particular market is continuously intensifying, with the growing endeavors of strong contenders like Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google to bridge the gap with Amazon.

This poses a serious risk to Amazon’s cloud market position. Moreover, the growing momentum of Microsoft Azure and Google Cloud is concerning for AWS.

Currently, Amazon carries a Zacks Rank #4 (Sell).

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

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>