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Amazon Extends Tie up With Salesforce, Gains Competitive Edge

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Amazon (AMZN - Free Report) is firing on all cylinders to bolster presence in the global cloud market on the back of its robust cloud platform, Amazon Web Services (“AWS”), and strategic partnerships.

Recently, AWS has extended its partnership with Salesforce.com (CRM - Free Report) , the leading provider of on-demand customer relationship management (“CRM”) software. This move is in sync with Amazon’s intention to ensure seamless and secured sharing of data by integrating its products with those of Salesforce.

With the latest move, Amazon aims at offering improvised data integration services to its customers, consequently enhancing its key offerings.

Coming to the price performance, shares of Amazon have returned 68.9% over a year, outperforming the industry’s rally of 30.9%.



Product Integration to Drive Growth

As part of this expanded global alliance, AWS PrivateLink will be integrated with Salesforce APIs which will allow the SaaS application developers to generate PrivateLink-enabled Salesforce endpoints. Consequently, these developers will aid the companies to harness their customer data in their business activities efficiently and securely.

Further, the integration of Amazon Connect with Salesforce Service Cloud will enable customer workflow management with technologies like CRM, interactive voice response and automatic call distributor.

Additionally, these integrations will allow the companies to subscribe to Salesforce Platform Events on AWS which in turn will aid them to track customer activities properly.

All these strong endeavors bode well for Amazon’s continued focus toward expanding its cloud services portfolio. Moreover, these product integrations will help the AWS customers to strengthen their customer relationships and engagement.

Consequently, this will aid Amazon to expand its customer base which will lead to revenue generation in AWS. This in turn will drive the company’s top-line.

Further, the latest move will allow the company to rapidly penetrate the fast growing global customer engagement solutions market, which as per a report from MarketsandMarkets, is expected to hit $23.2 billion by 2023 at a CAGR of 10.5% between 2018 and 2023.

Gaining Competitive Edge

Amazon, which dominates the cloud market, has taken the fight to big players like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google and Adobe with its CRM initiatives.

These companies are also putting strong efforts to expand their footprints in the growing cloud as well as customer engagement solutions market.

Recently, Microsoft formed a new partnership with Adobe and SAP called Open Data Initiative to help the companies to access their consumer data across Microsoft’s Dynamics 365 CRM, Adobe’s Customer Experience Platform and SAP’s S/4HANA and C/4HANA platforms by creating a single consumer data model on Microsoft Azure.

Further, Adobe has recently signed a definitive agreement to acquire Marketo, which is a provider of marketing tools via its cloud based business-to-business (B2B) engagement platform. This buyout will not only aid the companies add new customers and drive business but also strengthen Adobe Experience Cloud’s services.

Additionally, Google’s partnership with Salesforce allows the integration of the latter with Google Analytics 360 and G Suite. This helps the search giant deliver consumer analytics to the companies by allowing them to access sales, marketing and advertising data across Salesforce Sales Cloud, Salesforce Marketing Cloud and Google Analytics 360.

Nevertheless, Amazon is anticipated to lead the roster following the deal with Salesforce. Currently, the CRM leader is running major portion of its public cloud workloads on AWS and this bodes well for Amazon’s momentum in the cloud market.

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

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