Amazon (NASDAQ:AMZN) continues to capitalize on the success of its robust cloud computing arm—Amazon Web Services (“AWS”). The ongoing enhancement of AWS offerings, a driving force behind the company’s growing cloud customer base, remains a pivotal factor.
The recent strategic decision by Trip.com (NASDAQ:TCOM) to choose AWS as its primary cloud provider underscores the efficiency and reliability of AWS’ cutting-edge cloud products and services.
In leveraging AWS’ robust infrastructure and cloud services, Trip.com aims to bolster its global expansion efforts and elevate the travel experience by providing cost-effective travel booking services and seamless on-the-go customer support. As part of this initiative, TCOM has successfully migrated over 400 international business microservices to AWS, accelerating its air ticket booking system.
Expansion of Customer Base
Trip.com’s adoption of AWS adds considerable strength to AWS’ diverse customer portfolio. Notably, Hyundai, SCAYLE, BYD, and Axiata Group Berhad have recently chosen AWS as their preferred cloud provider, each intending to advance its digital transformation with the support of AWS.
Furthermore, Mitsubishi UFJ Financial Group (MUFG) is leveraging AWS’ generative AI and ML capabilities for its digital transformation. Aerodyne, a drone solution provider, has fully embraced AWS to address intricate industrial challenges related to drone data.
Cathay has also joined the ranks, selecting AWS as its strategic cloud partner to establish the Cathay Machine Learning Innovation Hub. The Bank of Ayudhya Public Company Limited (Krungsri) has chosen AWS to enhance its digital transformation and accelerate financial inclusion efforts in Thailand.
AWS’ expanding customer base is anticipated to fuel its top-line growth. In Q3 2023, AWS generated $23.1 billion in revenue, constituting 16.1% of total sales, marking a 12.3% YoY increase. Our model estimates project AWS revenues to reach $92.8 billion in 2023, reflecting a growth rate of 15.8% from 2022.
The robust performance of AWS, now an integral part of Amazon, is likely to instill optimism among investors. Amazon has seen a remarkable 74.5% gain on a year-to-date basis.
Conclusion
The continuous expansion of AWS’ global clientele, coupled with its growing portfolio, data centers, and cloud regions, positions the company competitively against rivals such as Microsoft (MSFT) and Alphabet’s (GOOGL) Google.
On a different note, Microsoft Azure, a key growth driver for Microsoft, holds a 23% market share. The company thrives on the widespread adoption of Azure cloud offerings, driven by an expanding number of global availability zones and regions, along with the strength of its consumption-based business.
Simultaneously, Google Cloud significantly contributes to Alphabet’s total revenues, holding an 11% market share. The ongoing expansion of data centers, availability zones, and cloud regions is expected to further elevate Alphabet’s standing in the cloud market.
Featured Image: Unsplash
Author Faith Yakubu 
