Amazon Expands Deal With Salesforce, Gains Competitive Edge

Amazon (NASDAQ:AMZN) is firing on all cylinders to bolster presence in the global cloud market on the back of its robust cloud platform, Amazon Web Services (“AWS”), and strategic partnerships.

Recently, AWS has extended its partnership with Salesforce.com (NYSE:CRM), the leading provider of on-demand customer relationship management (“CRM”) software.

This move is in sync with Amazon’s intention of ensuring better customer service at a lower cost by integrating its services such as Amazon Connect with platforms like Salesforce.

The deal, which is focused on customer service centers, is Amazon’s latest gambit to increase market share in the lucrative cloud computing business. It intends to give both sellers and customers a solid reason to opt for AWS.

Amazon.com, Inc. Price and Consensus

Partnership to Drive Growth

As part of this expanded global alliance, Amazon Connect will be integrated with Salesforce’s new offering named Service Cloud Voice to deliver enhanced customer service support.

Amazon Connect is an Amazon Web Services offering for call centers. The latest deal will give call center workers a new set of tools to do their jobs in a more effective way. The integration of Amazon Connect with Service Cloud Voice will enable customer workflow management with technologies like CRM, interactive voice response and automatic call distributor.

Further, thanks to the partnership, AWS content will be available on Salesforce's free online learning platform — Trailhead — to train people in cloud technology. The deal will also let Salesforce declarative platform tool — Einstein Voice Skills — to be compatible with Amazon Alexa.

Notably, these integrations will allow the companies to subscribe to Salesforce Platform on AWS, which in turn will aid them to track and respond to customer queries properly.

All these strong endeavors bode well for Amazon’s continued focus on expanding the cloud services portfolio. Moreover, these product integrations will help AWS customers to strengthen customer relationships and engagement.

Consequently, this will aid Amazon to expand the customer base, which will lead to revenue generation in AWS. This in turn will drive the company’s topline.

Portfolio Strength & Higher Cloud Competition

Strong portfolio is a key catalyst that drives AWS’ momentum. This in turn is encouraging the unit to expand its services portfolio.

Recently, the company made AWS IQ generally available. Notably, the service is equipped to easily connect with AWS-Certified experts and enable seamless interaction with project-oriented customers.

Further, AWS made Amazon Quantum Ledger Database available to general customers. The service helps in storage of structured and unstructured data in the ledger through database capabilities, as well as document-oriented data model.

However, cloud market competition is intense, thanks to companies like Microsoft (NASDAQ:MSFT) , Alphabet’s (NASDAQ:GOOGL) Google, Alibaba (NYSE:BABA) , IBM (NYSE:IBM) and others that are undertaking efforts to strengthen market share.

Nevertheless, Amazon is anticipated to lead the roster, following the deal with Salesforce. Currently, the CRM leader is running the majority of its public cloud workloads on AWS and this bodes well for Amazon’s momentum in the cloud market.

Zacks Rank

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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