Amazon
’s
AMZN
cloud clientele continues to strengthen as evident from social media company
Twitter
’s
TWTR
latest multi-year agreement with Amazon Web Services (“AWS”).
Twitter selected AWS as its strategic cloud provider for its timelines. Notably, the company will leverage AWS’s compute, container, storage and security services for supporting the delivery of millions of daily Tweets by scaling its real-time service with low latency.
Further, by utilizing AWS infrastructure and services, Twitter will build architecture for strengthening its on-premises infrastructure in order to run and scale the real-time service throughout the world.
Twitter is looking forward to utilize AWS Graviton2-based instances on Amazon Elastic Compute Cloud (Amazon EC2) for backing its cloud-based workloads. Further, it will continue to leverage Amazon CloudFront and Amazon DynamoDB.
The latest move by Twitter highlights the efficiency and reliability of AWS’s innovative cloud products and services. Moreover, its new multi-year deal strengthens Twitter’s decade-long relationship with AWS.
Strengthening Client Base
The recent move by Twitterstrengthens the customer base of AWS further.
Apart from this, Star Alliance recently went all-in on AWS. Further, Nationwide selected AWS as its preferred cloud provider and is migrating business critical workloads to the latter’s cloud platform.
Further, Arm Holdings recently declared about shifting a major portion of its electronic design automation (“EDA”) workloads to AWS.
Furthermore, Thomson Reuters recently completed the shifting of its several servers and revenue-generating applications to AWS in order to support its digital transformation strategy.
Additionally, Metro Goldwyn Mayer (“MGM”) entered a multi-year agreement with AWS. As part of the latest collaboration, MGM is shifting library and critical SAP workloads to AWS to make advancements in its core media supply chain and enterprise-wide media distribution platform.
Boom Supersonic, which is gearing up to bring back supersonic flights to the skies, has gone all-in on AWS. MercadoLibre, an e-commerce dominant in Latin America, also recently selected AWS as its primary cloud provider.
Further, ViacomCBS recently extended its agreement with AWS in a bid to shift operations for its entire broadcast footprint to the latter’s cloud platform. Moreover, ViacomCBS selected AWS as its preferred cloud provider for its global broadcast media operations.
Further, AWS got selected by Zalando as the official cloud provider. Also, it was selected by Standard Chartered Bank.
We believe that growing clientele will continue to drive top-line growth of AWS, which has become an integral part of Amazon. In third-quarter 2020, AWS generated $11.6 billion in revenues (12.1% of total revenues), which rose 29% year over year.
Portfolio Strength: Key Catalyst
We note that AWS is expected to continue witnessing growth in its clientele on the heels of its focus on enhancing service offerings.
The company recently rolled out a cloud-based healthcare service called Amazon HealthLake.
Further, it unveiled Amazon DevOps Guru, which improves application availability by using ML services.
Additionally, the company rolled out five industrial ML services namely Amazon Monitron, Amazon Lookout for Equipment, the AWS Panorama Appliance, the AWS Panorama SDK, and Amazon Lookout for Vision.
Further, AWS recently made Amazon Managed Workflows for Apache Airflow (“MWAA”) generally available. Notably, the service offers availability, security and improved scalability to customers, while managing their workflows using Apache Airflow.
We believe all these endeavors will help Amazon in maintaining the dominant position in the cloud market, wherein competition is intensifying with the growing endeavors of peers like
Microsoft
MSFT
,
Alphabet
’s
GOOGL
Google and Alibaba.
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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