Amazon's AMZN cloud computing arm — Amazon Web Services ("AWS") — continues to strengthen its services offerings in a bid to sustain its cloud dominance.
This is evident from the latest announcement of a managed wide area network (WAN) service, namely AWS Cloud WAN.
The new service aids in the seamless development, management, operation and monitoring of a global network with the help of a central dashboard.
The service enables a robust connection among on-premise data centers, branch offices, and cloud resources. It also connects Amazon Virtual Private Clouds across the AWS global network.
AWS Cloud WAN prevents enterprises from configuring and managing different networks individually by allowing them to use simple network policies for the same purpose.
Customer Base to Expand
We believe that the latest move will help AWS gain strong momentum among customers in the data-driven world, wherein the demand for a single unified network continues to increase.
Notably, customers like Cisco, Deloitte, Swisscom, Verizon, VMware and Flutter have already shown interest in AWS Cloud WAN.
We believe that the growing customer momentum will continue to drive AWS's top line. Strengthening clientele will continue to aid its dominance and competitive edge against its strong peers like Microsoft MSFT and Alphabet's GOOGL Google.
Apart from customer interests in the new service, AWS was picked by the largest social media platform, Meta FB, as the strategic cloud provider.
Notably, Meta will expand the use of computing, storage, databases and security services of AWS for ensuring privacy. Also, it will run third-party collaborations on AWS.
Further, Aurora has recently chosen AWS as its preferred cloud provider for machine learning training and cloud-based simulation workloads.
Then again, Nasdaq has signed a multi-year agreement with AWS in a bid to accelerate the development of advanced cloud-enabled infrastructure for the world's capital markets. It is gearing up to transfer its North America markets to AWS.
Per the latest Canalys report, AWS accounted for 32% of the global cloud spending in third-quarter 2021, sustaining its leading position in the booming cloud market.
Azure, the second-largest cloud-service provider, accounted for 21% of the worldwide cloud spending. Google Cloud represented 8% of the cloud spending, marking it the third-largest cloud provider.
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The latest move bodes well for the growing efforts of AWS toward expanding its product and services portfolio.
Apart from AWS Cloud WAN, the company recently unveiled a visual development environment — AWS Amplify Studio — which enables web application user interface creation with minimal coding.
The company introduced AWS Private 5G, which enables enterprises to deploy and scale their 5G mobile network seamlessly.
AWS announced a new managed service called AWS IoT FleetWise, which helps collect and transfer data from millions of vehicles to the cloud in real-time cost-efficiently.
It announced AWS IoT TwinMaker, which helps in the quick creation of digital twins of devices, equipment, and processes.
The company unveiled three Amazon Elastic Compute Cloud (Amazon EC2) instances, namely C7g, Trn1 and Im4gn/Is4gen/I4i.
It announced four storage services and capabilities — Amazon Simple Storage Service Glacier Instant Retrieval, Amazon FSx for OpenZFS, Amazon EBS Snapshots Archive and AWS Backup.
AWS introduced six capabilities for Amazon SageMaker, namely Canvas, Ground Truth Plus, Studio, Training Compiler, Inference Recommender and Serverless Inference.
Along with these, Amazon recently announced the general availability of Babelfish for Amazon Aurora PostgreSQL-Compatible Edition, which helps run Microsoft SQL Server applications on Amazon Aurora seamlessly.
AWS made Amazon EC2 DL1 instances generally available. DL1 instances, backed by Gaudi accelerators from Habana Labs, assist in training ML models.
We believe that all these endeavors along with expanding data centers and cloud region will continue to aid Amazon in winning clientele in the booming cloud market.
However, Amazon, which currently carries a Zacks Rank #5 (Strong Sell), is currently facing stiff competition from Microsoft and Alphabet.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Notably, Microsoft Azure has become the key growth driver for Microsoft. The company is currently riding on the robust adoption of Azure cloud offerings. Notably, 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.
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