Amazon’s (AMZN) AWS Gets Picked by Delta, Boosts Clientele



Amazon


AMZN

continues to ride on its robust cloud computing arm, Amazon Web Services (“AWS”). Strengthening AWS offerings, which are constantly driving the company’s cloud customer momentum, remain the key catalysts.

The latest selection of AWS by Delta Air Lines as the preferred cloud provider is a testament to the aforesaid fact. This 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, Delta strives to streamline the processes from booking to flight experience in order to deliver an enhanced experience to customers.

Further, Delta, with the help of AWS, aims to advance its core technology platforms that support its customer engagement center operations.


Expanding Customer Base


The latest move of Delta has added strength to the customer base of AWS.

We believe that AWS’s persistent focus on enhancing its offerings will continue to expand its clientele.

Apart from Delta, AWS was picked by

Boeing


BA

as the strategic cloud provider.

In a bid to bring advancement in aerospace design and manufacturing, Boeing will migrate its applications from on-premise data centers to AWS. Boeing will leverage AWS’s scalable, robust, and high-performing infrastructure and cloud services, including high-performance computing.

We believe that the expanding customer base will continue to drive AWS’s top line. In first-quarter 2022, AWS generated revenues of $18.4 billion (16% of Amazon’s net sales), which rose 35% year over year.


Portfolio Strength – Key Catalyst


The latest move bodes well for the growing efforts of AWS toward expanding its product and services portfolio.

Apart from the latest move, Amazon recently announced the general availability of its managed wide area network (WAN) service, namely AWS Cloud WAN, which aids in the seamless development, management, operation and monitoring of a global network with the help of a central dashboard.

The company also made its Graviton3 processor-backed Amazon Elastic Compute Cloud (Amazon EC2) C7g instances generally available. The instances offer enhanced performance to customers for their compute-intensive workload.

Amazon also announced the general availability of AWS IoT TwinMaker, which helps in the quick creation of digital twins of devices, equipment and processes.

The company made its new visual development environment — AWS Amplify Studio, which enables web application user interface creation with minimal coding — generally available.

Additionally, it announced the general availability of Amazon Aurora Serverless v2, which automatically scales hundreds of thousands of transactions in a fraction of a second.


To Conclude


We believe that AWS’s expanding portfolio, data centers and cloud region 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 availability zones and regions globally, 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 a solid customer momentum, continues to maintain its dominant position in the cloud market.

Per the latest Canalys report, AWS accounted for 33% of the global cloud spending in fourth-quarter 2021, while Microsoft Azure and Google Cloud accounted for 22% and 9% of the total cloud spending worldwide, respectively.

According to the latest Canalys report, AWS accounted for 33% of the global cloud spending in first-quarter 2022, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud-service provider, accounted for 21% of the worldwide cloud spending. Alphabet’s Google Cloud represented 8% of the cloud spending, marking itself the third-largest cloud provider.

Amazon, which has lost 34.5% on a year-to-date basis, remains well-poised to gain investors’ confidence in the near term on the back of its well-performing AWS and growing cloud prospects.


Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.


Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report


To read this article on Zacks.com click here.


Zacks Investment Research