Amazon (AMZN - Free Report) continues to ride on solid customer momentum of its cloud computing arm — Amazon Web Services (AWS).
Notably, Liberty Media (FWONA - Free Report) owned Formula 1(F1) — known for the highest class of single-seater auto racing — has introduced six real-time racing statistics leveraging AWS services. Notably, F1 had selected AWS as its official cloud and Machine Learning (ML) provider in 2018.
This, in turn, highlights the efficiency and reliability of AWS’ innovative cloud products and services.
New F1 statistics are named asCar Performance Scores, Ultimate Driver Speed Comparison, High-Speed/Low-Speed Corner Performance, Driver Skills Rating, Car/Team Development & Overall Season Performance and Qualifying and Race Pace Predictions.
With the first three statistics, F1 strives to offer fans an on-screen graphic reflecting the complete breakdown of a car’s total performance, a comparison of their favorite drivers with others based on past performance dating back to 1983, and insights on how drivers manage the fastest bends on the track.
Further, the remaining three statistics will offer a clear picture of driver’s skills, team’s cumulative performance based on their various races, and prediction regarding, which team is nearing success based on practice and qualifying laps data.
All these statistics, which are based on ML models backed by Amazon SageMaker and AWS Lambda, leverage data stored in Amazon S3, Amazon Kinesis and sensors in F1 cars. Further, the new statistics that help in predicting race outcomes better will be launched through the 2020 season.
We believe AWS’ focus on enhancing services offerings is the key catalyst behind its strong customer momentum.
Recently, AWS made its three new sixth generation Amazon EC2 instances namely M6g, C6g and R6g generally available.
Further, it has updated features of its fully managed data security and data privacy service— Amazon Macie. The company has updated ML models of the underlined service for more accurate detection of Personally Identifiable Information (PII).
Apart from this, AWS made Amazon Augmented Artificial Intelligence (A2I) generally available to customers.Furthermore, AWS made ML backed enterprise search service, Amazon Kendra, available to customers.
We believe expanding cloud services portfolio will continue to help AWS in winning clientele.
We note that expanding customer base will continue to drive AWS’ top line in the near and the long term. In first-quarter 2020, AWS generated $10.2 billion sales, accounting for 14% of Amazon’s net sales. Further, the figure was up 32.8% year over year.
Recently, AWS was selected as the preferred cloud provider by Genesys for Genesys Cloud.
Further, Lyell Immunopharma, which is focused on creation of curative adoptive cell therapy for solid tumours, has gone all-in on AWS. Notably, the client is leveraging AWS’ secure and elastic compute capacity in order to design and test potential new cell therapy constructs at high speed.
Further,TC Energy has recently gone all-in on AWS. TC Energy has already migrated 90% of its corporate and commercial applications. It is utilizing AWS’ ML, database, serverless, storage, analytics and compute services to aid it in generating power for millions of home.
We believe the company’s constant efforts toward strengthening cloud services portfolio in this data-driven world will continue to drive customer momentum.
Moreover, it will help Amazon in maintaining dominant position in the cloud market where competition is intensifying with the growing endeavors of peers including Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google, IBM and Alibaba.
Notably, AWS’ market share was around 32% in first-quarter 2020, per a Synergy Research Group report. Although Azure and Google Cloud witnessed expansion in their market share, which stood at 18% and 8%, respectively, AWS retained its lead position.
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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