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Amazon Gains Competitive Edge in Cloud With Aurora Serverless

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Amazon’s (AMZN - Free Report) cloud computing arm Amazon Web Services (“AWS”) is focused on bolstering presence in the cloud industry through the expansion of its service portfolio.

Recently, the company has made its Aurora Serverless available to the general public. Notably, this is a new deployment option for Amazon Aurora.

Aurora Serverless aids users in managing their database without maintaining any instances. It ensures automatic scaling, start and shut down of databases as per the user’s need.

With the latest move, the company’s key offerings will get enhanced. This is likely to expand the customer base of the company, which will drive its top-line growth. Moreover, this will strengthen the company’s market position.

Coming to the price performance, shares of Amazon have returned 62.4% on a year-to-date basis, outperforming the industry’s rally of 30.4%.



Robust Services Portfolio to Aid Growth

Amazon’s continued efforts toward expanding its product portfolio bodes well for its leading position in the highly growing cloud market.

Per the latest report from Gartner, the global cloud infrastructure market is expected to reach $40.8 billion in 2018. Further, it is anticipated to hit $83.5 billion by 2021.

Along with the general availability of Aurora Serverless, AWS has recently made its new high frequency instance for (Amazon EC2), advanced memory optimized instances and memory optimized instances available to general public.

Moreover, AWS announced the general availability of new services like Amazon Elastic Container Service for Kubernetes (EKS), Amazon Neptune (graph database service) and Amazon Sumerian (augmented reality, virtual reality and 3D applications).

We believe Amazon is well poised to reap benefits from the immense growth opportunities of the cloud market.

AWS Gaining Traction

AWS is gaining traction with its expanding clientele, courtesy of its continuous efforts to improve its offerings.

Within a span of one month, the company has acquired quite a few clients in sync with its dominant market share.

Recently, the company has acquired a client namely Samsung Heavy Industries, which leverages the power of Amazon EC2, Amazon RDS, Amazon S3, AWS Key Management Service and AWS CloudTrail for its smart shipping systems division.

Last month, AWS added Epic Games, Formula One Group (Formula 1) and Major League Baseball to its clientele.

Further, the company extended its partnership with 21st Century Fox, per which the latter will be moving its key platforms and workloads to AWS.

All these will continue to strengthen AWS’ competitive position against the other major players in the cloud market such as Microsoft’s (MSFT - Free Report) Azure, Alphabet’s (GOOGL - Free Report) Google Cloud, Oracle (ORCL - Free Report) and IBM.

Moreover, with Amazon Aurora, AWS has gained competitive edge against Oracle.

Per the Synergy Research Group’s latest report, AWS has succeeded in maintaining its dominant position by acquiring 34% market share in the last quarter.

Meanwhile, market shares of Azure, Google Cloud and IBM were pegged at 14%, 6% and 8%, respectively.

Consequently, growing clientele will help the company to sustain momentum in the cloud market.

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

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