Amazon (AMZN) AWS' Selection by Nationwide Expands Client Base
Amazon’s AMZN strengthening cloud service portfolio is helping it gain customers.
Recently, the company’s cloud computing arm — Amazon Web Services (AWS) — has been selected as the preferred cloud provider by Nationwide, a Fortune 100 insurance and financial services provider.
Per the deal, Nationwide will move the majority of critical business workloads to AWS. It will migrate more than 850 business and customer-facing applications. These applications include claims, personal and commercial insurance policy systems, along with its flagship website Nationwide.com.
The company will leverage AWS’ machine learning services, analytics, compute, database, networking, serverless, storage and other services in order to accelerate digital transformation.
In addition, AWS Enterprise Next will enable Nationwide to create an on-site, cross-functional team to help modernize the latter’s applications, IT environment and operating practices. It has already built more than 60 applications for Nationwide in the cloud.
Nationwide’s selection of AWS as its official cloud provider highlights the efficiency and reliability of AWS’ innovative cloud products, as well as services.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
AWS to Gain
As enterprises are increasingly adopting digital transformation techniques to automate and accelerate business processes for boosting productivity at home amid the pandemic, AWS is poised to gain and continue dominating the cloud market.
We believe the latest deal holds promise in this coronavirus-hit world where “stay-at-home” practices and social distancing have been made mandatory across offices worldwide.
The adoption rate of cloud services and more importantly video conferencing tools has increased significantly owing to these COVID-induced restrictions.
Bottom Line
Amazon is the leading provider of cloud infrastructure as a service to enterprise customers. AWS’ expanding customer base driven by strengthening cloud offerings will continue to aid the company's dominance in the global cloud space.
Even more encouraging is the fact that AWS generates much stronger margins than the traditional retail business, which should remain a positive for Amazon’s profitability as it continues to grow in the mix.
However, the cloud market is becoming intensely competitive due to strengthening cloud initiatives by Microsoft MSFT, Alphabet’s GOOGL Google and Alibaba BABA.
Microsoft is benefiting from momentum in Azure, and impressive growth in clientele triggered by coronavirus-led work from home, online learning wave, as well as tele healthcare trends. Furthermore, it is well poised to expand the total addressable market through the acquisition of GitHub.
Also, Alibaba’s cloud computing business has been gaining a lot of traction. It is a dominant force in China but has also gained traction in other regions. The company has opened new data centers across the world.
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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