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Amazon's (AMZN) AWS Clientele Expands With adidas' Selection

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Amazon's (AMZN - Free Report) robust cloud services portfolio is helping it gain customers.

adidas selected Amazon Web Services (AWS) as its preferred cloud provider for SAP workloads. This highlights the efficiency and reliability of AWS’ innovative cloud products and services.

adidas will shift its SAP workloads to AWS to digitize its core business processes, which will enable it to support new business models and turn the same into data-centric businesses. adidas will also be able to connect its data across its global operations.

Its capabilities in advanced analytics, data science and enterprise reporting will strengthen by integrating its SAP S/4HANA environment with AWS.

AWS’ extensive SAP experience will allow adidas to create a cloud-based consumer experience.


Expanding Clientele

The latest selection by adidas added strength to AWS’ expanding clientele.

Recently, AWS was selected by Qualtrics, the preferred cloud provider. Qualtrics is shifting its complete portfolio of experience management applications and customer-facing workloads to AWS.

Additionally, Under Armour (UAA - Free Report) picked AWS as the preferred cloud provider for SAP. It will integrate its SAP environments with AWS technologies to gain meaningful insights into its businesses.

Under Armour, which completed the migration of its SAP environments to AWS earlier this year, is looking to leverage AWS’ analytics, machine learning, compute and storage to accelerate innovation across resource-efficient production, direct-to-consumer sales and global wholesale distribution plus many other areas of its business.

Compagnie Financière Richemont also selected AWS as its preferred cloud provider. It is heading toward closing its European data centers and shifting more data centers in Hong Kong and the United States to AWS. Also, it will migrate above 5,000 virtual machines and 120 SAP instances to AWS.

NXP Semiconductors recently picked AWS as its preferred cloud provider and shifted its electronic design automation workloads to AWS to bolster its throughput across its design centers.

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

Competitive Scenario

Amazon’s strong efforts toward expanding its cloud-computing offerings will continue to aid it in winning customers. This, in turn, will continue to boost its cloud dominance and competitive edge against its peers like Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.

According to the latest Canalys report, AWS accounted for 32% of the global cloud spending in third-quarter 2021, 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 and Alphabet’s Google Cloud represented 8% of the cloud spending, marking itself the third largest cloud provider.

However, Amazon, which presently carries a Zacks Rank #5 (Strong Sell), is facing stiff competition from Microsoft and Alphabet as both are targeting a bigger slice of the market on the back of their advancing cloud portfolios, which are bumping up their cloud revenues. This poses a serious challenge to Amazon’s dominant position in the cloud market.

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

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

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