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Amazon Wins Choice Hotels' Contract, Expands Cloud Presence

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Amazon’s (AMZN - Free Report) presence in the booming cloud market continues to strengthen on the back of growing adoption of its cloud services.

Amazon Web Services’ (“AWS”) latest client acquisition, Choice Hotels International (CHH - Free Report) , is a testament to the fact. The renowned and popular lodging franchisor has selected AWS to migrate its infrastructure.

Notably, Choice Hotels will move its more than 1,000 technology applications to AWS, in order to achieve scalability and operational efficiency.

The cloud giant will offer AWS machine learning and analytics services via Amazon ML Solutions Lab to Choice Hotels which will enable the latter to deliver enhanced customer experience.

The latest deal seems like an extension of relationship between both the companies. Choice Hotels already leverages the power of AWS to manage its global reservation system and distribution platform, property-management system, and data analytics platform.

Consequently, the deal highlights the power and reliability of AWS services. Further, it expands AWS’ customer base.

Offerings & Availability: A Key Catalyst

Amazon is gaining traction among the cloud customers on the back of the innovative AWS services portfolio.

Recently, the company introduced Amazon DocumentDB, a document database service which is compatible with MongoDB applications and tools. It also offers scalability and availability to customers which help them in managing their critical MongoDB workloads.

Additionally, the company’s AWS RoboMaker is now available. Notably, the service aids in development, testing and deployment of robotics applications.
Further, AWS is planning to acquire to CloudEndure which offers recovery services for cloud data which significantly helps in case of cyber-attacks. Notably, the company’s services offerings will get enhanced with the addition of such disaster-resilient services to the portfolio.

Apart from service offerings, the company’s expanding availability zones and regions are also acting as a tailwind. Recently, the company launched AWS Europe (Stockholm) Region, marking its fifth region in Europe.

Further, AWS offers 60 availability zones on a global basis.

Growing Clientele

Apart from the recent client acquisition, AWS has been successful in attracting other customers to its platform during fourth-quarter 2018.

Companies like National Australia Bank, The Guardian Life Insurance Company of America, Amgen, Korean Air Lines, Mobileye, Ellie Mae, Pac-12 Conference and Open Bank have selected AWS for running the majority of their workloads and infrastructure.

Notably, this rapid expansion of customer base is likely to drive AWS revenues which will boost Amazon’s top-line growth.

Further, the company’s strengthening market share will continue to aid its dominant position in the cloud market where other players like Microsoft’s (MSFT - Free Report) Azure, Alphabet’s (GOOGL - Free Report) Google Cloud, Alibaba cloud, IBM Cloud and many more are also putting strong efforts in order to acquire a greater market share in an era where cloud is becoming inevitable for businesses.

We believe the company’s expanding cloud services portfolio, regions and availability zone, and growing cloud initiatives will continue to provide a competitive edge against the above-mentioned other cloud providers.

Currently, Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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