Amazon AMZN is poised to sustain its momentum in the global cloud market on the back of expanding clientele and strength in cloud services offering.
Recently, the company’s cloud computing arm — Amazon Web Services (AWS) — was selected by Old Mutual Limited as its preferred cloud provider. This highlights the efficiency and reliability of the company’s AWS services.
Africa-based Old Mutual provides financial solutions to retail and corporate customers. The firm is leveraging AWS’ analytics and Machine Learning (ML) services in order to enhance customer experience.
Notably, Old Mutual is using Amazon Lex, Amazon SageMaker and Amazon Personalize and other services to offer security to customers and accelerate production rate.
Additionally, the financial solutions provider will shift digital customer platforms, product administration systems and core insurance applications to AWS. Notably, it will move more than 1,000 of its applications.
Expanding Customer Base
The recent move by Old Mutual bodes well for AWS’ consistent efforts to expand its clientele. Apart from this, AWS was recently selected by The Globe and Mail as its preferred cloud provider.
Further, the company acquired another client — Pro Football Focus (PFF) — which opted AWS as its official cloud and ML provider. PFF has transitioned its entire infrastructure to AWS.
We believe that expansion of customer base will continue to drive AWS’ top line in the near and the long term.
Moreover, it will help Amazon to maintain its dominant position in the cloud market.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote
Portfolio Strength & Higher Cloud Competition
Strong portfolio is a key catalyst driving AWS’ momentum. This is prompting the unit to expand its services portfolio.
Recently, the company recently made AWS IQ generally available. Notably, the service is equipped to easily connect with AWS-Certified experts and enable seamless interaction with project-oriented customers.
Further, AWS made Amazon Quantum Ledger Database available for general customers. The service helps in storage of structured and unstructured data in the ledger through database capabilities as well as document-oriented data model.
AWS also announced the general availability of Amazon Forecast and AWS Lake Formation. Amazon Forecast provides highly accurate forecasts by leveraging ML techniques. AWS Lake Formation aids in seamless building, securing and managing data lakes.
However, cloud market competition is intense thanks to companies like Microsoft MSFT, Alphabet’s GOOGL Google, Alibaba BABA, IBM and others that are undertaking efforts to strengthen market share.
Moreover, Microsoft Azure and Google Cloud are gaining strong traction among customers, which is a threat to AWS’ market position.
Currently, Amazon carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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