Back to top

Image: Bigstock

Amazon's (AMZN) AWS Gets Selected by Southwest Airlines

Read MoreHide Full Article

Amazon (AMZN - Free Report) continues to ride on strengthening its Amazon Web Services ("AWS") offerings, which are constantly driving its cloud customer momentum.

The latest selection of AWS by Southwest Airlines Co. (LUV - 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.

With the aid of AWS’s robust portfolio of cloud technologies and global infrastructure, Southwest Airlines strives to boost its digital transformation efforts as well as deliver responsive customer support experience, streamline its operations and unveil advanced digital solutions.

Amazon Redshift, a cloud data warehouse, delivers analytics capabilities for analysts, data scientists and business users to gain real-time and predictive insights across its entire operation.

To provide real-time and predictive insights across its entire operations to analysts, data scientists and business users, Southwest Airlines is leveraging Amazon Redshift.

To build, train and deploy machine learning models for any use case seamlessly, Southwest Airlines is using Amazon SageMaker., Inc. Price and Consensus, Inc. Price and Consensus, Inc. price-consensus-chart |, Inc. Quote


Expanding Customer Base

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

We believe that AWS's persistent focus on bolstering its portfolio will continue to expand its clientele.

Apart from recent selection by Southwest Airlines, AWS was recently picked by Zurich Insurance Group. It migrated its enterprise information technology infrastructure to AWS.

Further, Yahoo selected AWS as its preferred public cloud provider for the advancement of its advertising technology business, Yahoo Ad Tech. Yahoo shifted all its advertising technology workloads to AWS to boost its advertising business operations, develop advanced solutions and reduce IT infrastructure costs.

Further, AWS was chosen by Stability AI as the preferred cloud provider. Stability AI strives to build and scale its AI models with AWS.

Additionally, Brookfield migrated its legacy systems to AWS in a bid to accelerate its digital transformation.
Also, Wallbox went all-in on AWS by shifting its entire IT infrastructure, including design and manufacturing platforms, device and grid-management systems as well as customer-facing applications, to AWS.

We believe that the expanding customer base will continue to drive AWS’s top line growth. In fourth-quarter 2022, AWS generated revenues of $21.4 billion (14% of total sales), which grew 20% year over year.

To Conclude

We believe that AWS’s strengthening clientele across the world, on the back of its expanding portfolio, data centers and cloud regions will continue to aid Amazon, currently carrying a Zacks Rank #3 (Hold), in gaining a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.

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

Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Azure's increasing number of global availability zones and regions, 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.

Nevertheless, AWS, with solid customer momentum, continues to maintain its dominant position in the cloud market.

According to the latest Canalys report, AWS accounted for 32% of global cloud spending in fourth-quarter 2022, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud-service provider, accounted for 23% of worldwide cloud spending. Alphabet’s Google Cloud represented 10% of cloud spending, making it the third-largest cloud provider.

Published in