Markets

Amazon's 2nd GovCloud Region to Boost Government Clientele

An image of a pen on an open laptop
Credit: Shutterstock photo

Amazon 's AMZN cloud computing arm Amazon Web Services ("AWS") is focused on bolstering presence in the cloud industry through expansion of its availability zones.

The company has rolled out its second isolated infrastructure region for government agencies and the organizations in highly regulated industries.

The latest region is called AWS GovCloud (US-East) Region which is based in the eastern part of the United States. With the launch of this region, the organizations in the public sector will be able to accomplish their critical programs by running their workloads on AWS with low latency and high security.

This move of AWS will aid the company in attracting more government organizations to its platform especially those which are based in the East Coast, in turn bolstering its government customer base.

Coming to the price performance, shares of Amazon have returned 39.5% on a year-to-date basis, outperforming the industry 's rally of 0.6%.

Growing Focus on Government Space

The latest move of the company is in sync with its strong efforts toward gaining traction in the government sector. It is also the result of strong demand emanating from this region on the back of the company's government customers.

This demand stems from the success of the first such region named AWS GovCloud (US-West) which was launched in 2011. Since then Amazon is witnessing growing adoption of AWS in the public sector.

Notably, the company strives to cater to the stringent, high security and compliance requirements of the U.S. based regulated industries and public sector with AWS GovCloud Regions.

Amazon.com, Inc. Revenue (TTM)

Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote

Competitive Gain

We believe all these will continue to aid the company's momentum in the public sector. Further, strengthening cloud infrastructure for government agencies will provide a competitive advantage to Amazon against the likes of Microsoft MSFT , Alphabet GOOGL and IBM IBM .

Microsoft provides high security, protection and compliance services to public sector organizations via Azure Government.

Similarly, IBM also offers Federal government cloud solutions by meeting the Federal Risk and Authorization Management Program (FedRAMP), a compliance requirement of the U.S. Government.

Further, Google Cloud provides government solutions and is also gaining traction among the government agencies.

Nevertheless, the expanding AWS GovCloud Regions will continue to aid Amazon's momentum in the public sector. Further, the company meets several compliance requirements like FedRAMP, Federal Information Security Management Act (FISMA), US International Traffic in Arms Regulations (ITAR) to name a few.

Additionally, AWS services are benefiting from the increasing number of availability zones. Notably, the new region will be comprised of three such zones thus bringing the total number of availability zones to 57 globally.

Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

3 Medical Stocks to Buy Now

The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.

So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.

See them today for free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

International Business Machines Corporation (IBM): Free Stock Analysis Report

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN GOOGL IBM MSFT

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More