Yahoo Finance Amazon's (AMZN) AWS Clientele Expands With Experian's Pick
Amazon AMZN continues to ride on its robust cloud computing arm — Amazon Web Services (AWS). Moreover, strengthening AWS offerings, which are constantly driving the company’s cloud customer momentum, remains the key catalyst.
Experian’s latest selection of AWS as the preferred cloud provider is a testament to the aforesaid fact and highlights the efficiency and reliability of AWS's innovative cloud products and services.
With the aid of AWS’s robust portfolio of cloud technologies and global infrastructure, Experian intends to shift its core business operations, consumer-services products, analytics tools and on-premises servers to AWS in a bid to support its multiyear information technology modernization initiative.
Additionally, it intends to build customized programs and offer real-time financial services by expanding the usage of AWS cloud computing services.
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Expanding Customer Base
The latest move of Experian has added strength to the customer base of AWS.
We believe that AWS's persistent focus on bolstering its portfolio will continue to expand its clientele.
Apart from the recent selection by Experian, AWS was chosen by Southwest Airlines Co. LUV as the preferred cloud provider.
Southwest Airlines strives to boost its digital transformation efforts, deliver a responsive customer support experience, streamline its operations and unveil advanced digital solutions on the heels of AWS solutions.
In addition, AWS was recently picked by Zurich Insurance Group. It migrated its enterprise information technology infrastructure to AWS.
We believe that the expanding customer base will continue to drive AWS’s top-line growth. In fourth-quarter 2022, AWS generated revenues of $21.4 billion (14% of total sales), which grew 20% year over year.
To Conclude
We believe that AWS’s strengthening clientele across the world, on the back of its expanding portfolio, data centers and cloud regions, will continue to aid Amazon, currently carrying a Zacks Rank #3 (Hold), in gaining a competitive edge against its peers, namely Microsoft MSFT and Alphabet’s GOOGL Google.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Azure's increasing number of global availability zones and regions, along with strength in its consumption-based business, is likely to continue driving Microsoft's cloud momentum in the near term.
Similarly, Google Cloud is contributing substantial growth to the total revenues of Alphabet. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.
Nevertheless, AWS, with solid customer momentum, continues to maintain its dominant position in the cloud market.
According to the latest Canalys report, AWS accounted for 32% of global cloud spending in fourth-quarter 2022, maintaining its leading position in the booming cloud market.
Microsoft’s Azure, the second-largest cloud-service provider, accounted for 23% of worldwide cloud spending. Alphabet’s Google Cloud represented 10% of cloud spending, making it the third-largest cloud provider.
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