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Amazon's (AMZN) Cloud Clientele Expands as Picks AWS

Amazon AMZN continues to ride on its robust cloud computing arm — Amazon Web Services (“AWS”). Moreover, strengthening AWS offerings, which are constantly driving the company’s cloud customer momentum, remains the key catalyst.’s TCOM latest selection of AWS as the strategic cloud provider is a testament to the aforesaid fact and highlights the efficiency and reliability of AWS' innovative cloud products and services. intends to leverage AWS’ robust infrastructure and cloud services to support its global expansion and deliver an enhanced travel experience by offering cost-effective travel booking services and hassle-free on-the-go customer service support.

TCOM has already migrated over 400 international business microservices to AWS to accelerate its air ticket booking system., Inc. Price and Consensus, Inc. Price and Consensus, Inc. Price and Consensus, Inc. price-consensus-chart |, Inc. Quote


Expanding Customer Base’s latest move has added strength to AWS’ customer base.

Hyundai recently selected AWS as the preferred cloud provider. The latter intends to support its digital transformation on the back of AWS. Also, SCAYLE and BYD picked AWS as the preferred cloud provider.

AWS was recently picked by Axiata Group Berhad as the primary cloud provider.

Mitsubishi UFJ Financial Group (MUFG) picked AWS as its preferred cloud provider. MUFG intends to support its digital transformation by leveraging AWS’ generative AI and ML capabilities.

Aerodyne, a drone solution provider, has gone all-in on AWS to solve complex industrial issues with drone data.

Cathay has recently selected AWS as its strategic cloud partner to establish the Cathay Machine Learning Innovation Hub.

The Bank of Ayudhya Public Company Limited (Krungsri) has also chosen AWS to boost its digital transformation and accelerate the financial inclusion drive in Thailand.

We believe that AWS’ expanding customer base will continue to drive its top-line growth. In third-quarter 2023, AWS generated revenues of $23.1 billion (16.1% of total sales), which grew by 12.3% year over year.

Our model estimate for 2023 AWS revenues is projected at $92.8 billion, indicating growth of 15.8% from 2022.

The strengthening performance of AWS, which has become an integral part of Amazon, will likely instill investor optimism in the stock.

Amazon has gained 74.5% on a year-to-date basis.

To Conclude

We believe that AWS’ growing global clientele, on the back of its expanding portfolio as well as data centers and cloud regions, will continue to help the company gain a competitive edge against its peers, namely Microsoft MSFT and Alphabet’s GOOGL Google.

Amazon, currently carrying a Zacks Rank #2 (Buy), accounted for 32% of the global cloud infrastructure services market in third-quarter 2023, per the latest Synergy Research Group data. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On the other hand, Microsoft Azure, which has become Microsoft's key growth driver, accounted for 23% of the market. 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.

Meanwhile, Google Cloud is contributing substantial growth to Alphabet's total revenues. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position. Alphabet’s Google Cloud acquired 11% of the market, making it the third-largest cloud provider.

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