Amazon
AMZN
ramps up the competition in the cloud market with the introduction of Amazon Web Services’ (“AWS”) Graviton3 processor-backed Amazon Elastic Compute Cloud (Amazon EC2) C7g instances.
Cost-efficient C7g instances offer enhanced performance to customers for their compute-intensive workload.
Arm-based AWS Graviton3 processors deliver up to three times better performance for machine learning workloads compared with the company’s last-generation chips — AWS Graviton2 processors.
Graviton3 offers up to two times higher floating-point performance for scientific, machine learning, and media encoding workloads. It further provides up to two times faster performance for cryptographic workloads.
The new processors deliver 25% better performance in comparison with Graviton2 processors.
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Competitive Edge Over Arm
Although Amazon, currently carrying a Zacks Rank #5 (Strong Sell), faces stiff competition from its strong peers, namely
Microsoft
MSFT
,
Alphabet
’s
GOOGL
Google and
Oracle
ORCL
in the cloud domain, AMZN’s strengthening efforts toward bolstering its in-house Arm-based chip portfolio remain noteworthy.
The launch of AWS Graviton2 processors is a testament to the same.
Notably, Arm architecture has gained momentum with the rise in the demand for cheaper but efficient cloud solutions worldwide in order to lower costs.
Cost-effectiveness hugely depends on the energy consumption by the cloud servers. Notably, the lesser the energy consumption, the lower will be the cost. Arm processors, widely used in smartphones and tablets, are commonly known for their low energy consumption. Consequently, the utilization of the processors makes cloud systems more efficient.
Therefore, the Arm-based Graviton processors, which do not require an x86 instruction set that is expensive for the scale-out workloads, make AWS a more viable option in lowering costs.
AWS offers a wide range of cost-effective and power-efficient compute instances. Apart from Graviton3-powered Amazon EC2 C7g instances, AWS’s Graviton2 instance portfolio offers 12 different instances such as accelerated computing instances, storage optimized, compute optimized and memory optimized.
Efforts by Microsoft, Alphabet & Oracle
Oracle recently introduced its first Arm compute instances called OCI Ampere A1, which leveled up its game with Amazon. Notably, OCI Ampere A1 costs one cent per core hour.
Oracle, which currently carries a Zacks Rank #3 (Hold), intends to accelerate app development and improvise application performance on its cloud infrastructure on the back of OCI Ampere A1.
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Meanwhile, Microsoft and Google are yet to incorporate Arm-based chips in their cloud platforms.
Reportedly, Microsoft has forayed into designing in-house Arm-based chips for Azure servers and Surface PCs. The Zacks Rank #3 company intends to produce a processor for use in its data centers by leveraging Arm designs.
Alphabet’s Google has hired Intel engineering veteran Uri Frank in an effort to design server chips. This is in sync with the Zacks Rank #1 company’s increasing investment in customizing its chips in order to reduce energy use and increase performance across its cloud business.
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