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Amazon's (AMZN) AWS Picked by Qualtrics, Customer Base Rises

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Amazon’s (AMZN - Free Report) cloud computing platform, Amazon Web Services (AWS) recently extended partnership with Qualtrics International (XM - Free Report) ).

Qualtrics has chosen AWS as its preferred cloud provider. This highlights the efficiency and reliability of AWS’s innovative cloud products as well as services.

Qualtrics is shifting its complete portfolio of experience management applications and customer-facing workloads to AWS.

Qualtrics is leveraging AWS’ key-value and document database service named Amazon DynamoDB for its XM Directory.

It is also using Amazon SageMaker to help data scientists in building, training and deploying machine learning (ML) models quickly.

Thus, AWS’ infrastructure and broad capabilities like ML, analytics, databases, security, and compute will help Qualtrics to gain operational efficiency as well as provide customers with deeper insights with the help of new features.

Further, the move will enable Amazon to make data-driven decisions efficiently on the back of Qualtrics’ experience management technology, which would help in understanding customer and employee feedback quickly.

Expanding Customer Base

AWS has been witnessing continuous growth in the customer base on the back of its robust portfolio of products and services. Apart from Qualtrics, other companies like NXP Semiconductors (NXPI - Free Report) and Under Armour have selected AWS as their official cloud provider.

NXP Semiconductors has migrated its electronic design automation workloads from NXP data centers to AWS in order to gain long-term process improvements.

AWS’ infrastructure and portfolio of cloud capabilities are leveraged by NXP Semiconductors to increase productivity for semiconductor design and verification, minimize scheduling risks for design projects, and lower costs with elastic scaling of compute resources.

Further, AWS was picked by Under Armour as its preferred cloud provider. AWS’ technologies were integrated with the company’s SAP environments for more resilience, security and digital transformation.

We believe that this expanding customer base will continue to drive top-line growth of AWS, which generated $16.1 billion revenues in third-quarter 2021, up 39% year over year, accounting for 14.5% of revenues.

Competition in the Booming Cloud Computing Market

The cloud computing market is witnessing significant growth due to the remote working trend owing to the coronavirus pandemic. Cloud computing companies are focusing on providing cost-effective and productive digital solutions to customers working from home and learning online.

According to Fortune Business Insights report, the global cloud computing market is expected to reach $791.48 billion in 2028 from $250.04 billion in 2021, progressing at a CAGR of 17.9% between 2021 and 2028.

Amazon’s expanding customer base is expected to continue aiding its dominance in this promising market.

Yet, this Zacks Rank #5 (Strong Sell) company is facing strong competition from players like Alphabet’s (GOOGL - Free Report) Google and Microsoft (MSFT - Free Report) , which are also gaining strong traction in the cloud market on the back of their advancing cloud services portfolio.

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

Alphabet generated $4.9 billion revenues from Google Cloud in third-quarter 2021, up 44.9% year over year.

Recently, Google Cloud collaborated with Workday, wherein the latter will enable customers to run its finance, HR and planning applications on Google Cloud.

Meanwhile, Microsoft’s cloud revenues were $20.7 billion in first-quarter fiscal 2022, up 36% year over year.

Recently, Microsoft introduced Azure Healthcare APIs to enable customers to ingest, manage and persist data in the Microsoft Cloud for Healthcare.