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Amazon's (AMZN) Client Base Expands as BBVA Selects AWS

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Amazon (AMZN - Free Report) continues to ride on its robust cloud computing arm — Amazon Web Services (“AWS”). The solid customer momentum of AWS is driving the company’s top line.

The latest selection of AWS by Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA") is a testament to the same.

Notably, BBVA will leverage AWS to accelerate its data-driven transformation. It will utilize AWS’ analytics and machine learning capabilities to bolster its risk management process, deliver advanced solutions and innovate its internal processes.

More precisely, BBVA intends to develop a data platform by using AWS Lake Formation and Amazon DataZone, both of which will manage and secure access to the data platform and ensure data governance and compliance.

With the help of this platform, BBVA strives to provide a unified view of the data for its various business units.

BBVA will leverage Amazon SageMaker, which will enable its data scientists to build, train and deploy machine learning models for any use case.

It will utilize AWS’ generative AI capabilities and Amazon Bedrock to create innovative financial solutions.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Portfolio Strength: Key Catalyst

BBVA’s latest move highlights the efficiency and reliability of AWS’ innovative cloud products and services. AWS’ focus on enhancing its offerings is likely to drive customer momentum.

AWS recently made its purpose-built security data lake, called Amazon Security Lake, generally available. The service aids in the simplification of compliance monitoring and security data management across hybrid and multi-cloud environments by centralizing an organization’s security data across AWS environments.

Further, the company introduced a new configuration for Amazon Aurora, namely Amazon Aurora I/O-Optimized, which provides improved price performance and predictable pricing for I/O-intensive applications.

It also unveiled three new capabilities for its threat detection service called Amazon GuardDuty - GuardDuty EKS Runtime Monitoring, GuardDuty RDS Protection and GuardDuty Lambda Protection.

Additionally, AWS announced the general availability of AWS Telco Network Builder, which automates the deployment and management of telco networks on AWS.

Expanding Customer Base

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

Apart from BBVA, Veriff recently teamed up with AWS. Veriff is reinforcing its IT infrastructure with AWS to stay alert for fraudulent attacks. Further, it is leveraging the machine learning capabilities of AWS to accelerate the development of new identity verification solutions for various sectors.

Further, AWS was selected by Experian as the preferred cloud provider. With the aid of AWS’ robust portfolio of cloud technologies and global infrastructure, Experian intends to shift its core business operations, consumer-service products, analytic tools and on-premises servers to AWS in a bid to support its multiyear information technology modernization initiative.

AWS was picked by Southwest Airlines Co. (LUV - Free Report) as the preferred cloud provider.

Southwest Airlines strives to boost its digital transformation efforts, deliver a responsive customer support experience, streamline its operations and unveil advanced digital solutions on the heels of AWS solutions.

In addition, Zurich Insurance Group selected AWS to migrate its enterprise information technology infrastructure to AWS.

We believe that AWS’s expanding customer base will continue to drive its top-line growth. In first-quarter 2023, AWS generated revenues of $21.3 billion (17% of total sales), which grew 16% year over year.

Moreover, the strengthening performance of AWS, which has become an integral part of Amazon, will likely instill investor optimism in the stock.

Notably, Amazon has gained 49.8% on a year-to-date basis.

To Conclude

We believe that AWS’ growing global clientele, on the back of its expanding portfolio as well as data centers and cloud regions, will continue to help the company gain a competitive edge against its peers, namely Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google.

Amazon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Per the latest Canalys report, AWS accounted for 32% of global cloud spending in first-quarter 2023, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second largest cloud service provider, accounts for 23% of worldwide cloud spending. 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.

Meanwhile, Alphabet’s Google Cloud represented 8% of the cloud spending, marking itself the third largest cloud provider. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.

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