Amazon AMZN continues to witness growth in its cloud clientele on the back of its well-performing cloud computing arm Amazon Web Services (“AWS”). Moreover, its strengthening cloud service offerings are constantly driving the customer momentum.
This is evident from the latest move of Arm Holdings, wherein it is shifting a major portion of its electronic design automation (“EDA”) workloads to AWS.
For this purpose, Arm, which is well-known for its processors or CPUs, is using AWS Graviton2-based instances for increasing throughput for its engineering workloads.
Further, it is leveraging a range of other Amazon Elastic (NYSE:ESTC) Compute Cloud (Amazon EC2) instances to streamline costs and timelines.
The latest migration by Arm highlights the efficiency and reliability of AWS’s innovative cloud products and services.
Arm has already witnessed six-time improvement in performance time for EDA workflows on AWS since its initial migration.
Strengthening Clientele
The recent move by Arm adds strength to the customer base of AWS further.
Apart from this, Nationwide recently selected AWS as its preferred cloud provider and is migrating business critical workloads to the latter’s cloud platform.
Further, Thomson Reuters (NYSE:TRI) recently completed the shifting of its several servers and revenue-generating applications to AWS in order to support its digital transformation strategy.
Additionally, Metro Goldwyn Mayer (“MGM”) entered a multi-year agreement with AWS. As part of the latest collaboration, MGM is shifting library and critical SAP workloads to AWS to make advancements in its core media supply chain and enterprise-wide media distribution platform.
Additionally, Boom Supersonic, which is gearing up to bring back supersonic flights to the skies, has gone all-in on AWS. MercadoLibre (NASDAQ:MELI), an e-commerce dominant in Latin America, also recently selected AWS as its primary cloud provider.
Further, ViacomCBS (NASDAQ:VIAC) recently extended its agreement with AWS in a bid to shift operations for its entire broadcast footprint to the latter’s cloud platform. Moreover, ViacomCBS selected AWS as its preferred cloud provider for its global broadcast media operations.
Further, AWS got selected by Zalando as the official cloud provider. Also, it was selected by Standard Chartered (OTC:SCBFF) Bank.
Amazon.com (NASDAQ:AMZN), Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
To Conclude
We believe AWS that will continue witnessing growth in its clientele on the heels of its focus on enhancing service offerings.
Moreover, strengthening the customer base will help Amazon in maintaining the dominant position in the cloud market, wherein competition is intensifying with the growing endeavors of peers like Microsoft MSFT, Alphabet (NASDAQ:GOOGL)’s GOOGL Google and Alibaba (NYSE:BABA) BABA.
Additionally, growing clientele will continue to drive the top-line growth of AWS, which has become an integral part of Amazon. In third-quarter 2020, AWS generated $11.6 billion in revenues (12.1% of total revenues), which rose 29% year over year.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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