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Amazon's (AMZN) AWS Gets Selected by Rivian, Boosts Clientele

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

The latest selection of AWS by Rivian (RIVN - Free Report) as the preferred cloud provider is a testament to the aforesaid fact. This highlights the efficiency and reliability of AWS's innovative cloud products and services.

Further, the deal has strengthened the existing relationship between AWS and Rivian.

In a bid to boost the efficiency and performance of electric vehicles, and accelerate the consumer and commercial shift to these vehicles, Rivian is leveraging AWS's analytics, compute, containers, and machine learning capabilities.

More precisely, Rivian is utilizing Amazon Elastic Kubernetes Service to manage and orchestrate software updates. For the deployment of updates, it is using Amazon CloudFront.

Additionally, Rivian's software-defined vehicle architecture and over-the-air software updates are powered by AWS., Inc. Price and Consensus, Inc. Price and Consensus, Inc. price-consensus-chart |, Inc. Quote

Portfolio Strength

The latest move of Rivian has added strength to the customer base of AWS.

We believe that AWS's persistent focus on enhancing its offerings will continue driving its customer momentum.

AWS recently announced a managed service called AWS IoT FleetWise, which helps collect and transfer data from millions of vehicles to the cloud cost-efficiently in real-time.

The company introduced a managed wide area network (WAN) service, namely AWS Cloud WAN, which aids in the seamless development, management, operation and monitoring of a global network with the help of a central dashboard.

Furthermore, it announced AWS IoT TwinMaker, which helps in the quick creation of digital twins of devices, equipment and processes.

The company also unveiled three Amazon Elastic Compute Cloud (Amazon EC2) instances, namely C7g, Trn1 and Im4gn/Is4gen/I4i.

AWS made Amazon Elastic Compute Cloud (Amazon EC2) DL1 instances generally available. DL1 instances, backed by Gaudi accelerators from Habana Labs, assist in training ML models.

Additionally, Amazon made a device called AWS Panorama Appliance generally available. The device helps run applications, which require analysis of multiple video streams from the existing on-premise cameras.

Bottom Line

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

Aurora has recently chosen AWS as its preferred cloud provider for machine learning training and cloud-based simulation workloads.

Nasdaq has signed a multi-year agreement with AWS in a bid to accelerate the development of advanced cloud-enabled infrastructure for the world's capital markets. It is gearing up to transfer its North America markets to AWS.

Gilead Sciences picked AWS as the preferred cloud provider to accelerate the development process and delivery of medicines.

Discovery expanded its relationship with AWS to drive its transformation in the cloud. Also, the Federal National Mortgage Association — Fannie Mae is shifting IT workloads from on-premise data centers to AWS.

We note that Amazon's clientele win will continue to aid its cloud dominance.

Per 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 (MSFT - Free Report) Azure, the second-largest cloud-service provider, accounted for 21% of worldwide cloud spending. Alphabet's (GOOGL - Free Report) Google Cloud represented 8% of the cloud spending, marking itself the third-largest cloud provider.

However, Amazon, presently carrying 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. This poses a serious threat to Amazon's dominant position in the cloud market.

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