Back to top

Image: Bigstock

Amazon (AMZN) AWS Picked by, Boosts Clientele

Read MoreHide Full Article

Amazon (AMZN - Free Report) is making every effort to strengthen its presence in the global cloud market, thanks to its Amazon Web Services (“AWS”) portfolio strength, which has been driving its customer momentum.

The latest selection of AWS by as the preferred cloud provider is a testament to the aforesaid fact. This highlights the efficiency and reliability of AWS’ innovative cloud products and services, like Amazon SageMaker and Amazon Bedrock. plans to support its generative AI-powered voice bot and chatbot solutions and scale them globally by leveraging AWS’ robust AI and Machine Learning (“ML”) services. made its solution available in the AWS Marketplace for this purpose. strives to improve its operational efficiency on the back of AWS.

Its operational costs were reduced by 20%, performance improved by 15% and infrastructure costs declined by 10% since it started migrating to AWS., Inc. Price and Consensus, Inc. Price and Consensus, Inc. price-consensus-chart |, Inc. Quote

Strengthening Clientele

The latest move by has added strength to AWS’ customer base.

Apart from this, AWS was recently selected by Hyundai as the preferred cloud provider. The latter intends to support its digital transformation on the back of AWS.

Mitsubishi UFJ Financial Group (MUFG) picked AWS as its preferred cloud provider. MUFG intends to support its digital transformation by leveraging AWS’ generative AI and ML capabilities.

DXC Technology (DXC - Free Report) teamed up with AWS and selected the latter as its preferred cloud provider to drive innovation and efficiencies across its organization.

DXC intends to aid its customers in their transition to a cloud-centric model by enabling them to migrate their workload to AWS.

This apart, the latest selection of AWS by PT Telekomunikasi Selular (Telkomsel) as the preferred cloud provider remains noteworthy.

We believe that AWS’s expanding customer base will continue to drive its top-line growth. In third-quarter 2023, AWS generated revenues of $23.1 billion (16.1% of total sales), which grew by 12.3% year over year.

Our model estimate for 2023 AWS revenues is projected at $92.8 billion, indicating growth of 15.8% from 2022.

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

Amazon has gained 50.5% on a year-to-date basis.

Wrapping Up

We believe that AWS’s growing global clientele due to its portfolio strength, 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 #2 (Buy). 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 elevating Alphabet's cloud position.

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

Per the latest Synergy Research Group data, AWS accounted for 32% of the global cloud infrastructure services market in third-quarter 2023, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud service provider, accounted for 23% of the market.

Alphabet’s Google Cloud acquired 11% of the market, making it the third-largest cloud provider.

Published in