Amazon (NASDAQ:AMZN) is further solidifying its position in the global cloud market by leveraging the strength of its Amazon Web Services (“AWS”) portfolio, driving customer momentum. The recent selection of AWS by Yellow.ai as its preferred cloud provider underscores the effectiveness and reliability of AWS’ innovative cloud products and services, including Amazon SageMaker and Amazon Bedrock.
Yellow.ai aims to enhance its generative AI-powered voice bot and chatbot solutions and expand its global reach by utilizing AWS’ robust AI and Machine Learning (“ML”) services. As part of this collaboration, Yellow.ai has made its solution available in the AWS Marketplace. The move is expected to improve operational efficiency, with Yellow.ai already experiencing a 20% reduction in operational costs, a 15% performance improvement, and a 10% decline in infrastructure costs since migrating to AWS.
The partnership with Yellow.ai adds to AWS’ growing customer base, which recently saw Hyundai, Mitsubishi UFJ Financial Group (MUFG), and DXC Technology selecting AWS as their preferred cloud provider. AWS aims to support digital transformation initiatives, leverage generative AI and ML capabilities, and drive innovation and efficiency across organizations.
In the third quarter of 2023, AWS generated revenues of $23.1 billion, representing 16.1% of Amazon’s total sales, and grew by 12.3% year over year. Projections estimate AWS revenues for 2023 at $92.8 billion, indicating a 15.8% growth from 2022.
The continued expansion of AWS’s customer base, supported by its robust portfolio and global infrastructure, is expected to contribute to Amazon’s competitive advantage against rivals like Microsoft (NASDAQ:MSFT) and Alphabet’s (NASDAQ:GOOGL) Google in the cloud market. While Microsoft Azure and Google Cloud are also driving substantial growth for their respective companies, AWS maintains its dominant position, accounting for 32% of the global cloud infrastructure services market in the third quarter of 2023, according to Synergy Research Group data.
Investor optimism in Amazon’s stock is likely to be bolstered by the strong performance of AWS, which remains a key growth driver for the company, achieving a year-to-date gain of 50.5%.
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Author Faith Yakubu 
