Amazon (NASDAQ:AMZN) is aggressively expanding its presence in the global cloud market, leveraging the strength of its Amazon Web Services (AWS) portfolio to attract more customers.
FanDuel‘s recent selection of AWS as its strategic cloud provider is a testament to AWS’s reputation for offering efficient and reliable cloud products and services. This decision further solidifies the existing partnership between FanDuel and AWS.
Under the agreement, FanDuel will utilize AWS’s cloud computing infrastructure to support its expansion efforts in the United States and Canada. Specifically, FanDuel plans to leverage AWS Outposts and Local Zones to scale its operations in both new and existing markets. The company has already been using AWS edge solutions to enhance security, scalability, and regulatory compliance.
This move strengthens AWS’s customer base, which has been steadily growing with recent high-profile selections. In addition to FanDuel, AWS was recently chosen by BMW Group as its preferred cloud provider. BMW aims to leverage AWS’s computing power, generative artificial intelligence, Internet of Things (IoT), machine learning, and storage capabilities to support its automated driving platform.
Dr. Reddy’s Laboratories also opted for AWS as its preferred cloud provider, migrating its SAP platform to AWS to accelerate the development of advanced healthcare applications and reduce application development time.
Occidental (NYSE:OXY) is another company that has selected AWS as its preferred cloud provider to enhance operational efficiencies and eliminate upfront capital expenditures. Occidental plans to transfer core production applications and on-premises IT infrastructure to AWS to expedite its digital transformation and the development of systems for carbon removal plants.
Sumitomo has chosen AWS to drive its digital transformation by migrating its SAP environments to the cloud, with plans to upgrade to SAP S/4HANA on AWS.
The expansion of AWS’s customer base is expected to continue driving its revenue growth. In the second quarter of 2023, AWS generated $22.1 billion in revenue, accounting for 17% of Amazon’s total sales and growing 12% year over year. Analysts project AWS revenues to reach $91.6 billion in 2023, a 14.4% increase from 2022.
The strong performance of AWS, which has become an integral part of Amazon, is likely to boost investor confidence in the company. Amazon’s stock has gained 50.5% year-to-date.
AWS’s global expansion, combined with its growing portfolio, data centers, and cloud regions, positions the company to remain competitive against rivals like Microsoft (NASDAQ:MSFT) and Alphabet’s (NASDAQ:GOOGL) Google. Microsoft’s Azure cloud offerings have been a significant growth driver for the company, while Google Cloud is contributing substantially to Alphabet’s total revenues.
Nevertheless, AWS, with its robust customer momentum, maintains its dominant position in the cloud market. According to a recent Canalys report, AWS accounted for 30% of global cloud spending in the second quarter of 2023, maintaining its leadership in the booming cloud market. Microsoft’s Azure, the second-largest cloud service provider, represented 26% of worldwide cloud spending, while Google Cloud accounted for 9%. This data underscores AWS’s continued strength and relevance in the cloud industry.
Featured Image: Unsplash @ Daniel Eledut
Author Stephanie Bédard-Châteauneuf 
