Amazon's AWS Picked by NTT DOCOMO, Increases Clientele

AMZN relies on Amazon Web Services (“AWS”). Strengthening AWS products, which drive cloud client momentum, has been the company's driver. The S&P 500 index rose 29.4% last year, but Amazon rose 91.8%.

NTT DOCOMO's (DOCOMO) latest pick of AWS proves the efficiency and reliability of AWS's innovative cloud products and services. DOCOMO will construct its nationwide 5G Open Radio Access Network (RAN) in Japan using AWS's powerful infrastructure and cloud services.

DOCOMO will integrate Amazon Elastic Kubernetes Service Anywhere (Amazon EKS Anywhere) into its 5G Open RAN to ease network operation with automated cluster management capabilities. This allows smooth connection with other AWS services in AWS Regions. DOCOMO has also begun proofs-of-concept using AWS Graviton Processors and Amazon EKS for their 5G Core. A hybrid cloud environment will let the company run its cloud-native 5G Core software. DOCOMO's move strengthened AWS's customer base.

Owkin chose AWS as its main cloud supplier. The latter plans to use AWS's scalable storage, data security, and processing power to develop generative AI applications and speed drug research and clinical trials.

Choice Hotels International CHH invested heavily in AWS. It moved its complete system infrastructure to AWS and closed its last data center. Choice Hotels updates its hotel-facing operations and management tools seamlessly to give franchisees the latest advancements.

We expect AWS's growing client base to boost its top line. AWS's fourth-quarter 2023 revenues were $24.2 billion (14% of total sales), up 13% year over year. The growing performance of AWS, which has become an integral element of Amazon, may boost investor optimism in the stock.

We believe that AWS's rising worldwide clientele, portfolio, data centers, and cloud regions will help it compete with Microsoft MSFT and Alphabet's GOOGL Google. Amazon, a Zacks Rank #1 (Strong Buy), held 31% of the global cloud provider market in fourth-quarter 2023,

Microsoft, which held 24% of the market, is enjoying strong momentum in its Intelligent Cloud business, which recorded $25.9 billion in revenues (41.7%), up 20% year over year in second-quarter fiscal 2024. Azure AI and strong Azure adoption are helping the organization. Azure and other cloud revenues increased 30% annually.

Alphabet's income is rising due to Google Cloud. Alphabet's cloud position will improve as data centers, availability zones, and cloud regions grow. In fourth-quarter 2023, Alphabet's Google Cloud bought 11% of the market and reported $9.19 billion (10.6% of total revenues), up 25.7% year over year.

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