Amazon AMZN continues to ride on its robust cloud computing arm, Amazon Web Services (“AWS”). Strengthening AWS offerings, which are constantly driving the company’s cloud customer momentum, remain the key catalysts.

The latest selection of AWS by Boeing BA as the strategic cloud provider is a testament to the aforesaid fact. This highlights the efficiency and reliability of AWS’s innovative cloud products and services.

The deal has strengthened the existing relationship between Amazon and Boeing.

In a bid to bring advancement in aerospace design and manufacturing, Boeing will migrate its applications from on-premise data centers to AWS.

Boeing will leverage AWS’s scalable, robust, and high-performing infrastructure and cloud services, including high-performance computing, to support its new as well as existing application. This will aid product innovation and efficiency in its operation.

Expanding Customer Base

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

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

Apart from Boeing, AWS recently got selected by Maple Leaf Sports & Entertainment as the official provider of AI, ML and deep learning cloud services. Maple Leaf will leverage AWS’s robust cloud capabilities to support its teams and lines of business.

Best Buy picked AWS as its preferred cloud provider for cloud infrastructure services and its strategic partner for developing cloud engineering talent.

We believe that the expanding customer base will continue to drive AWS’s top line. In fourth-quarter 2021, AWS generated revenues of $17.8 billion (13% of Amazon’s net sales), which rose 40% year over year.

To Conclude

We believe that AWS’s expanding portfolio, data centers and cloud region 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.

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 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.

Nevertheless, AWS, with a solid customer momentum, continues to maintain its dominant position in the cloud market.

Per the latest Canalys report, AWS accounted for 33% of the global cloud spending in fourth-quarter 2021, while Microsoft Azure and Google Cloud accounted for 22% and 9% of the total cloud spending worldwide, respectively.