Amazon


AMZN

continues to ride on strengthening Amazon Web Services (“AWS”) offerings, which are constantly driving the company’s cloud customer momentum.

The latest selection of AWS by Stability AI 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, Stability AI strives to build and scale its AI models.

In order to boost work on open-source generative AI models, Stability AI is leveraging AWS’ compute infrastructure and storage services.

To build and train Machine Learning (ML) models, reduce training time and costs, Stability AI will use Amazon SageMaker.

Further, Stability AI will use Amazon Elastic Compute Cloud (Amazon EC2) in order to run its open-source ML models on AWS.

Expanding Customer Base

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

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

Apart from Stability AI, AWS was recently picked by

Brookfield Asset Management


BAM

as the preferred cloud provider.

Brookfield has migrated its legacy systems to AWS in a bid to accelerate its digital transformation. For this, Brookfield leverages AWS’ analytics, containers, Internet of Things, ML, storage capabilities and robust partner network.

Additionally, Descartes Labs has gone all-in on AWS by migrating its core information technology (IT) infrastructure to AWS.

Also, Wallbox has gone all-in on AWS by shifting its entire IT infrastructure, including design and manufacturing platforms, device and grid-management systems, and customer-facing applications, to AWS.

This apart, Atos has selected AWS as its preferred enterprise cloud provider and signed a multiyear, global strategic transformation agreement.

Additionally, Slalom recently extended its global Strategic Collaboration Agreement with AWS.

We believe that the expanding customer base will continue to drive AWS’s top line growth. In third-quarter 2022, AWS generated revenues of $20.5 billion (16% of total sales), which grew 27% year over year.

To Conclude

We believe that AWS’s strengthening clientele across the world on the back of its expanding portfolio, data centers and cloud regions 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 global availability zones and regions, 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 solid customer momentum, continues to maintain its dominant position in the cloud market.

According to the latest Canalys report, AWS accounted for 32% of global cloud spending in third-quarter 2022, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud-service provider, accounted for 22% of worldwide cloud spending. Alphabet’s Google Cloud represented 9% of cloud spending, making it the third-largest cloud provider.

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