Amazon’s AWS Selected by BMW Group, Expanding Client Base

Amazon's AWS

Amazon (NASDAQ:AMZN) is strengthening its position in the cloud services market with the continued success of Amazon Web Services (AWS). The recent decision by the BMW Group to choose AWS as its preferred cloud provider underscores the trust in AWS’s cutting-edge cloud solutions.

BMW’s selection of AWS reflects the effectiveness and reliability of AWS’s innovative cloud products and services. Leveraging AWS’s computing power, generative artificial intelligence, Internet of Things capabilities, machine learning, and storage solutions, the BMW Group aims to enhance its automated driving platform. Their goal is to introduce advanced features to their automated vehicles by developing the next-generation advanced driver assistance system using AWS.

AWS will play a pivotal role in scaling BMW’s capacity to manage the growing volume of data generated during the development of automated driving features.

Expanding AWS’s Customer Base

BMW’s decision to partner with AWS adds another prominent name to AWS’s growing customer base. In addition to BMW, Dr. Reddy’s Laboratories recently chose AWS as its preferred cloud provider. Dr. Reddy’s made the move to AWS to accelerate the development of advanced healthcare applications and reduce application development time by 30%.

Occidental (OXY) also opted for AWS as its preferred cloud provider to enhance operational efficiencies and eliminate upfront capital expenditures. Their plan involves transferring core production applications and on-premises IT infrastructure to AWS, facilitating their digital transformation and the development of systems for carbon removal plants.

Sumitomo selected AWS to drive its digital transformation by migrating its SAP environments to AWS and upgrading to SAP S/4HANA.

AWS’s expanding customer base continues to drive its revenue growth. In the second quarter of 2023, AWS generated $22.1 billion in revenue, accounting for 17% of Amazon’s total sales, representing a 12% year-over-year growth.

Looking ahead, our model estimates AWS’s revenue for 2023 to reach $91.6 billion, indicating a robust growth rate of 14.4% compared to 2022.

AWS’s strong performance, which has become an integral part of Amazon, is likely to inspire confidence among investors. Amazon’s stock has surged by 64.6% year-to-date.


AWS’s expanding global client base, coupled with its growing portfolio, extensive data center infrastructure, and cloud regions, positions the company competitively against rivals like Microsoft (NASDAQ:MSFT) and Alphabet’s (NASDAQ:GOOGL) Google.

Microsoft Azure has emerged as a key growth driver for Microsoft, with robust adoption of Azure cloud offerings and an increasing number of global availability zones and regions.

Google Cloud contributes significantly to Alphabet’s total revenues, with plans for further expansion in data centers, availability zones, and cloud regions.

However, AWS, with its solid customer momentum, maintains its dominant position in the cloud market. According to the latest Canalys report, AWS accounted for 30% of global cloud spending in the second quarter of 2023, firmly holding the top spot in the flourishing cloud market. Microsoft’s Azure, the second-largest cloud service provider, accounted for 26% of worldwide cloud spending, while Alphabet’s Google Cloud represented 9% of cloud spending, making it the third-largest cloud provider.

Featured Image: Freepik @ user10017038

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