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Amazon (AMZN) Expands AWS Portfolio Offerings With DataZone

Amazon AMZN is making every effort to strengthen its presence in the booming cloud market on the back of its portfolio strength.

The company’s cloud division, Amazon Web Services (“AWS”), introduced a new data management service, namely Amazon DataZone, at AWS re:Invent event. This testifies to the aforesaid fact.

The new service eases the data management process and enables data producers to govern data access seamlessly. Further, it makes the task of driving business insights easier for data consumers by helping them discover, use and collaborate on data.

With the help of Machine Learning (ML), the service discards the heavy lifting of maintaining a data catalog. It also helps in suggesting metadata for each dataset. This apart, Amazon DataZone includes AWS analytics services like Amazon Redshift, Amazon Athena and Amazon QuickSight.

This integration protects data consumers from managing separate login credentials for these services while working on a data project. The underlined service also provides application programming interfaces (APIs) to the customers.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Customer Base to Expand

We believe that the underlined service will help AWS to gain strong momentum among various businesses as it provides seamless data access to engineers, data scientists, product managers, analysts and business users in an organization.

Notably, customers like ENGIE, Fox Corporation and Itau have already shown interest in AWS DataZone.

We believe that the growing customer momentum will continue to drive AWS's top line.

In third-quarter 2022, AWS generated revenues of $20.5 billion (16% of total sales), which grew 27% year over year.

Bottom Line

We believe that AWS’s strengthening clientele across the world will continue to aid Amazon in gaining a competitive edge against its strong peers like 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’s growing efforts toward strengthening its portfolio offerings are likely to keep it ahead of the above-mentioned peers.

Apart from Amazon DataZone, the company announced a new service called Amazon Security Lake, which is a purpose-built security data lake. It automatically centralizes an organization’s security data from cloud and on-premises sources into a purpose-built data lake.

It also announced a fully managed compute service, namely AWS SimSpace Weaver, that enables customers to deploy spatial simulations to model dynamic systems with many data points.

Further, it announced a new cloud application called AWS Supply Chain, which provides improved supply chain visibility to businesses.

Additionally, it introduced a new analytics service called AWS Clean Rooms that helps customers analyze and collaborate on collective datasets without revealing underlying data.

We believe that portfolio strength will continue to drive AWS’ customer momentum, which, in turn, will aid Amazon in sustaining its cloud dominance. This will instill investor optimism in the stock in the days ahead.

Notably, Amazon has lost 43.6% on a year-to-date basis.

According to the latest Canalys report, AWS accounted for 32% of global cloud spending in third-quarter 2022, maintaining its leading position in the booming cloud market.

Microsoft’s Azure, the second-largest cloud-service provider, accounted for 22% of worldwide cloud spending. Alphabet’s Google Cloud represented 9% of cloud spending, marking it the third-largest cloud provider.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader Zacks Computer & Technology sector is Asure Software ASUR, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software has gained 1.3% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 23%.

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