Amazon AMZN is making every effort to strengthen presence in the global cloud market backed by its portfolio strength, which is driving customer momentum.
BP, a global energy business, is the latest client of AWS. Notably, BP, which offers heat, light and mobility products and services, goes all-in on AWS. This highlights the efficiency and reliability of the company’s AWS services.
Notably, BP is closing its European mega data centers and moving all data to AWS in order to leverage latter’s ML, analytics, storage, security, databases and compute services.
Further, the company is migrating 900 key applications from its data centers to AWS. Additionally, it is planning to accelerate the migration of additional SAP applications to AWS.
BP will utilize Amazon Kinesis for receiving regular insights for its emissions monitoring and gas station pump operations. Further, BP is creating a data lake on Amazon Simple Storage Service.
Expanding Customer Base
The recent move by BP is in sync with AWS’ strategy to expand its clientele. Apart from this, AWS was selected as the primary cloud provider by ProSiebenSat.1 Media. The latter has decided to automate business by leveraging ML services of AWS.
Further, Western Union selected AWS as its preferred long-term strategic cloud provider. Also, Klarna and Old Mutual Limited selected AWS as its preferred cloud provider.
Furthermore, AWS was recently selected by Seattle Seahawks as its cloud, ML and AI provider. Additionally, FINRA CAT chose AWS as its cloud provider for the Consolidated Audit Trail (CAT).
Moreover, Best Western Hotels & Resorts, a global lodging powerhouse, moved infrastructure to AWS in a bid to automate processes and develop more personalized experiences for travelers.
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 in sustaining its dominant position in the cloud market.
Notably, AWS’ market share was around 40% in third-quarter 2019, per a Synergy Research Group report. Although cloud service providers like Azure, Google Cloud and Alibaba Cloud witnessed expansion in their market share in the same quarter, AWS held on to its lead position.
Portfolio Strength & Higher Cloud Competition
Strong portfolio is driving AWS’ momentum. This has persuaded the unit to expand services portfolio.
AWS recently announced a new service — AWS Wavelength — in an effort to offer low latency to customers. Notably, the new service is a combination of AWS compute and storage services, and cutting edge 5G networks.
The company also launched the preview of Amazon Braket, which is a fully-managed quantum computing service that enables customers to explore and experiment with quantum computing hardware.
Additionally, the company announced a service called Amazon Managed (Apache) Cassandra Service. Further, it announced three new security offerings – Amazon Detective, AWS IAM Access Analyzer and AWS Nitro Enclaves.
We believe all these strong efforts toward strengthening cloud services portfolio will continue to provide AWS a competitive edge against the likes of Microsoft MSFT, Alphabet’s GOOGL Google and Alibaba BABA, which are also leaving no stone unturned to expand their cloud market share.
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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