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Is Amazon's 7th LATAM Edge Venue a Threat to GOOGL & Others?
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Amazon (AMZN - Free Report) is gearing up to set up its seventh Edge location in Latin America (LATAM), in a bid to bolster presence in the region.
Notably, Buenos Aires, Argentina has been selected as the new location by Amazon Web Services (AWS), marking first-of-its-kind in the country. Notably, it is expected to go online this year itself.
The new Edge location will aid in delivering data, videos and applications at faster speeds to local users. Further, it will help in strengthening the cyber security of the companies. Additionally, the latest initiative is anticipated to strengthen the performance of Internet services by 90% in Argentina.
All the above-mentioned benefits of Amazon’s latest initiative are likely to expand its footprint in the country.
LATAM in Focus
Amazon’s latest move is likely to provide it a competitive edge against the likes of Microsoft (MSFT - Free Report) Azure, International Business Machines (IBM - Free Report) and Alphabet’s (GOOGL - Free Report) Google cloud. These cloud service providers are leaving no stone unturned to leverage the favorable environment for technical innovation in LATAM’s cloud computing market.
Moreover, increasing IT spending, strengthening infrastructure for digitization and business friendly regulations in LATAM are acting as tailwinds in attracting cloud providers to make advances in the region.
Further, growing proliferation of IoT, AI and big data are resulting in increase in the adoption rate of IaaS, SaaS and PaaS in LATAM.
Growing cloud initiatives of the above-mentioned companies are intensifying the competition in the market. According to a report from Synergy Research, AWS maintained its dominance over Azure, Google Cloud and IBM in the cloud space in the first-quarter 2019 with 33% market share.
However, the other cloud service providers are also making every effort to catch up with AWS. Further, Azure is growing rapidly on the back of its robust service portfolio which aided it in acquiring 16% market share.
Meanwhile Google Cloud accounted for 8% of the cloud market over the same time frame.
Coming to the year-to-date price performance, shares of Amazon, Microsoft and IBM have returned 26.8%, 32.1% and 21.9%, respectively, outperforming the S&P 500 Index’s rally of 14.9%. Meanwhile, shares of Alphabet have gained 3%, underperforming the S&P Index.
Year-to-Date Price Performance
GOOGL, MSFT & IBM: Strong Contenders
Google Cloud intends to invest $140 million in its Chilean data center located in Quilicura, Santiago. Notably, this is in addition to the company’s initial investment of $150 million. We believe the additional investment will expand the company’s storage capabilities and size of the data center.
Additionally, it is investing in submarine cables to offer customers private and high-speed connection to their cloud data. Submarine cable systems like Monet connects the United States to Brazil, Tannat connects Brazil, Uruguay and Argentina, and Junior will connect Rio to Santos.
Further, Google Cloud has three availability zones in Sao Paulo.
Meanwhile, Microsoft Azure provides cloud facilities in LATAM through its data center in Brazil. Further, this Zacks Rank #3 stock has an availability zone in the Brazil.
Further, IBM which carries a Zacks Rank #3 owns three data centers in LATAM – one located in Hortolandia, Sao Paulo, one in Jundiai, Sao Paulo and one in Queretaro, Mexico. Further, IBM Cloud Direct Link is now part of Ascenty’s connectivity portfolio. Notably, Ascenty is the largest data center infrastructure provider of LATAM. This is likely to reinforce IBM’s position in the cloud market of LATAM.
Amazon’s Aggressive Stance
The cloud leader’s latest move reflects its aggressive stance in LATAM’s cloud space. In March, AWS revealed its plan to launch an Edge location in Colombia, its sixth such location in LATAM at that point of time. Other Edge locations are based in Sao Paolo and Rio de Janeiro.
Further, the company has plans to set up advanced data centers in Argentina and Chile. Moreover, it is making every effort to aid astronomers in crunching huge troves of data from telescopes in Chile using its cloud services.
Additionally, AWS has three availability zones in LATAM which are located in Sao Paulo, Brazil. Further, it has offices in Brazil, Chile, Colombia, Argentina and Mexico.
We believe all these strong endeavors are likely to aid this Zacks Rank #3 stock’s cloud dominance in the long haul.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Is Amazon's 7th LATAM Edge Venue a Threat to GOOGL & Others?
Amazon (AMZN - Free Report) is gearing up to set up its seventh Edge location in Latin America (LATAM), in a bid to bolster presence in the region.
Notably, Buenos Aires, Argentina has been selected as the new location by Amazon Web Services (AWS), marking first-of-its-kind in the country. Notably, it is expected to go online this year itself.
The new Edge location will aid in delivering data, videos and applications at faster speeds to local users. Further, it will help in strengthening the cyber security of the companies. Additionally, the latest initiative is anticipated to strengthen the performance of Internet services by 90% in Argentina.
All the above-mentioned benefits of Amazon’s latest initiative are likely to expand its footprint in the country.
LATAM in Focus
Amazon’s latest move is likely to provide it a competitive edge against the likes of Microsoft (MSFT - Free Report) Azure, International Business Machines (IBM - Free Report) and Alphabet’s (GOOGL - Free Report) Google cloud. These cloud service providers are leaving no stone unturned to leverage the favorable environment for technical innovation in LATAM’s cloud computing market.
Moreover, increasing IT spending, strengthening infrastructure for digitization and business friendly regulations in LATAM are acting as tailwinds in attracting cloud providers to make advances in the region.
Further, growing proliferation of IoT, AI and big data are resulting in increase in the adoption rate of IaaS, SaaS and PaaS in LATAM.
Intensifying Cloud Battle, Share Price Performance
Growing cloud initiatives of the above-mentioned companies are intensifying the competition in the market. According to a report from Synergy Research, AWS maintained its dominance over Azure, Google Cloud and IBM in the cloud space in the first-quarter 2019 with 33% market share.
However, the other cloud service providers are also making every effort to catch up with AWS. Further, Azure is growing rapidly on the back of its robust service portfolio which aided it in acquiring 16% market share.
Meanwhile Google Cloud accounted for 8% of the cloud market over the same time frame.
Coming to the year-to-date price performance, shares of Amazon, Microsoft and IBM have returned 26.8%, 32.1% and 21.9%, respectively, outperforming the S&P 500 Index’s rally of 14.9%. Meanwhile, shares of Alphabet have gained 3%, underperforming the S&P Index.
Year-to-Date Price Performance
GOOGL, MSFT & IBM: Strong Contenders
Google Cloud intends to invest $140 million in its Chilean data center located in Quilicura, Santiago. Notably, this is in addition to the company’s initial investment of $150 million. We believe the additional investment will expand the company’s storage capabilities and size of the data center.
Additionally, it is investing in submarine cables to offer customers private and high-speed connection to their cloud data. Submarine cable systems like Monet connects the United States to Brazil, Tannat connects Brazil, Uruguay and Argentina, and Junior will connect Rio to Santos.
Further, Google Cloud has three availability zones in Sao Paulo.
Notably, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, Microsoft Azure provides cloud facilities in LATAM through its data center in Brazil. Further, this Zacks Rank #3 stock has an availability zone in the Brazil.
Further, IBM which carries a Zacks Rank #3 owns three data centers in LATAM – one located in Hortolandia, Sao Paulo, one in Jundiai, Sao Paulo and one in Queretaro, Mexico. Further, IBM Cloud Direct Link is now part of Ascenty’s connectivity portfolio. Notably, Ascenty is the largest data center infrastructure provider of LATAM. This is likely to reinforce IBM’s position in the cloud market of LATAM.
Amazon’s Aggressive Stance
The cloud leader’s latest move reflects its aggressive stance in LATAM’s cloud space. In March, AWS revealed its plan to launch an Edge location in Colombia, its sixth such location in LATAM at that point of time. Other Edge locations are based in Sao Paolo and Rio de Janeiro.
Further, the company has plans to set up advanced data centers in Argentina and Chile. Moreover, it is making every effort to aid astronomers in crunching huge troves of data from telescopes in Chile using its cloud services.
Additionally, AWS has three availability zones in LATAM which are located in Sao Paulo, Brazil. Further, it has offices in Brazil, Chile, Colombia, Argentina and Mexico.
We believe all these strong endeavors are likely to aid this Zacks Rank #3 stock’s cloud dominance in the long haul.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>