Amazon's ( AMZN Quick Quote AMZN - Free Report) robust cloud services portfolio is helping it gain customers. The selection of Amazon Web Services ("AWS") by Gilead Sciences ( GILD Quick Quote GILD - Free Report) as the preferred cloud provider is a testament to the same.
Gilead is leveraging AWS's robust machine learning (ML), compute, database and analytics capabilities in a bid to accelerate the development process and delivery of new medicines.
Gilead, which has migrated above 50% of its data center footprint to AWS in the past 12 months, is now planning to shift several critical applications, which support industry good practice guidelines, and drug manufacturing, storage, and distribution centric regulations, to AWS. Further, Gilead is leveraging AWS to implement SAP S/4HANA by hosting workloads for its enterprise resource planning transformation project. Expanding Customer Base
The latest selection by Gilead added strength to AWS's 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. Richemont, which is shifting its enterprise IT infrastructure to AWS, recently selected the latter as its preferred cloud provider. adidas picked AWS as its preferred cloud provider for SAP workloads. adidas will shift its SAP workloads to the latter to digitize its core business processes. Under Armour chose AWS as the preferred cloud provider for SAP. It will integrate its SAP environments with AWS technologies to gain meaningful insights into its businesses. NXP Semiconductors also picked AWS as its preferred cloud provider and shifted its electronic design automation workloads to AWS to bolster its throughput across its design centers. Apart from this, India-based Apollo Tyres went all-in on AWS and is migrating its IT infrastructure to the latter's cloud platform. We believe that the expanding customer base will continue to aid Amazon's cloud dominance and competitive position against Microsoft ( MSFT Quick Quote MSFT - Free Report) and Alphabet ( GOOGL Quick Quote GOOGL - Free Report) . 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. Alphabet's Google Cloud represented 8% of the cloud spending, marking it the third-largest cloud provider. Intensifying Competitive Pressure
Both Microsoft and Alphabet have now turned out to be strong peers of Amazon.
Currently, Amazon carries a Zacks Rank #5 (Strong Sell). You can see . the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Given the booming scenario in cloud space, both peers are leaving no stone unturned to expand their market shares. Notably, 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.