Amazon Picked by Klarna as Cloud Provider, AWS Base Expands
Amazon’s AMZN cloud computing arm, Amazon Web Services (“AWS”) is well poised to grow further in the global cloud market on the back of increasing clientele, driven by expanding and innovating cloud services portfolio.
Recently, AWS has been selected by a leading global payments provider — Klarna — to help the latter to abide with regulatory compliance and protect its customer data. This highlights the power and reliability of AWS services.
Klarna is leveraging AWS’ robust database capabilities in order to reduce fault tolerance and increase reliability, as it plans to further expand the business. In regard to this, Klarna will utilize AWS services for its Open Banking follow-up services. In addition, the company plans to use AWS for its other follow-up launches of cloud-based Open Banking platform and customer authentication platform with additional on-demand products.
This deal lends AWS a competitive edge against the likes of Microsoft’s Azure, Alphabet’s Google Cloud and Alibaba’s cloud platform.
Amazon.com, Inc. Price and Consensus
Portfolio Strength to Aid AWS Growth
Amazon’s continual efforts toward innovation and expansion are likely to help it maintain its cloud market lead.
Recently, AWS was selected by Europe-based ProSiebenSat.1 Media, a satellite and cable broadcasting company. Also, global lodging powerhouse, Best Western Hotels & Resorts moved its infrastructure to AWS in a bid to automate processes and develop more personalized experiences for travelers.
In addition, Amazon rolled out AWS Data Exchange that provides quick access to the data offered by qualified data providers to customers. Notably, data from brands such as Reuters, Change Healthcare, TransUnion, Foursquare and Pitney Bowes, among others, is available on AWS Marketplace.
With all these strong endeavors at its disposal, Amazon is well poised to reap benefits from the global cloud computing market.
Strong Market Position
Expansion of clientele is crucial for the market share of AWS. This is likely to aid Amazon to maintain its dominant position in the global cloud space where in competition is intense due to efforts by Microsoft MSFT, Alphabet’s GOOGL Google and Alibaba BABA, among others.
Per a report from Synergy Research Group, AWS continued to lead the cloud market in third-quarter 2019 with a 40% share. Although cloud service providers like Azure, Google Cloud and Alibaba Cloud are all making efforts to expand their share in the cloud market, AWS has maintained its leading position.
We believe increasing adoption rate of AWS will continue to strengthen Amazon’s market position and drive the top line.
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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