Amazon (NASDAQ:AMZN) continues to see strong growth in its cloud computing division, Amazon Web Services (AWS). The company’s robust AWS offerings have been driving its cloud customer momentum and serving as a key catalyst for its overall performance.

Amazon’s stock has surged by 91.8% over the past year, outperforming the S&P 500 index, which has rallied by 29.4%.

NTT DOCOMO’s recent decision to choose AWS underscores the efficiency and reliability of AWS’s innovative cloud products and services. DOCOMO plans to utilize AWS’s infrastructure and cloud services to deploy its nationwide 5G Open Radio Access Network (RAN) in Japan.

To simplify network operation, DOCOMO intends to integrate Amazon Elastic Kubernetes Service Anywhere (Amazon EKS Anywhere) into its 5G Open RAN. This integration will enable seamless interaction with other AWS services in AWS Regions.

Additionally, DOCOMO is developing its 5G Core on AWS and has already initiated proofs-of-concept using AWS Graviton Processors and Amazon EKS. This will allow DOCOMO to run its cloud-native 5G Core software in a hybrid cloud environment.

Expanding Customer Base

DOCOMO’s decision adds strength to AWS’s customer base. Other recent AWS customers include Owkin, which selected AWS as its primary cloud provider to develop generative AI applications and accelerate drug discovery and clinical trials. Choice Hotels International also shifted its entire system infrastructure to AWS, closing its last data center in the process. This move enables Choice Hotels to update its hotel-facing operations and management tools seamlessly.

AWS’s expanding customer base is expected to continue driving its revenue growth. In the fourth quarter of 2023, AWS generated $24.2 billion in revenue, accounting for 14% of Amazon’s total sales and growing 13% year over year.

The strong performance of AWS, which has become integral to Amazon, is likely to boost investor confidence in the stock in the future.

Conclusion

AWS’s growing global clientele, coupled with its expanding portfolio, data centers, and cloud regions, positions Amazon well against its competitors, including Microsoft and Alphabet’s Google.

According to the latest data from Synergy Research Group, Amazon held 31% of the worldwide cloud provider market in the fourth quarter of 2023. Microsoft, with 24% of the market, reported strong growth in its Intelligent Cloud business, driven by Azure’s robust adoption and strength in Azure AI. Google Cloud, accounting for 11% of the market, contributed substantial growth to Alphabet’s total revenues.

Amazon’s AWS is poised to continue its strong performance and maintain its competitive edge in the cloud computing market.

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