Amazon's Tie-Ups With Verizon & Others Add 5G Benefits To AWS

Amazon’s (NASDAQ:AMZN) cloud computing arm, Amazon Web Services (AWS), recently announced a new service – AWS Wavelength at the AWS re:Invent event in an effort to offer low latency to customers.

Notably, the new service is a combination of AWS compute and storage services, and cutting edge 5G networks.

Further, the company has joined forces with Verizon (NYSE:VZ) in order to leverage the latter’s 5G networks in order to develop applications serving use-cases with single-digit millisecond latencies.

Moreover, this partnership will aid Amazon in making AWS Wavelength available across the United States. Additionally, the company has teamed up with Vodafone (LON:VOD), SK Telecom, and KDDI to make the service available in Europe, South Korea, and Japan by 2020.

We believe Amazon will deliver enhanced experience to customers with AWS Wavelength, which runs ultra-low latency programs on mobile and connected devices.

5G Move to Benefit Amazon

Combining 5G speed with AWS services will help Amazon in enabling its customers to run cloud services consistently within a few milliseconds of mobile end-users.

With the latest move, Amazon’s has taken the game to Microsoft (NYSE:T) , which is also leaving no stone unturned to deliver low-latency experience to cloud customers.

We note that Microsoft announced a strategic alliance with AT&T (NYSE:T) last quarter with the help of which it recently introduced select preview availability for Network Edge Compute (NEC) technology. This will be available in Dallas within this year, and Los Angeles and Atlanta by next year to selected customers.

This move will enable Microsoft to offer Azure services through AT&T's virtualized 5G core Network Cloud.

Nevertheless, Verizon’s 5G Ultra Wideband network and robust 5G networks of Vodafone, KDDI and SK Telecom are likely to help AWS gain momentum among customers.

Companies like Varjo Technologies Oy and Mapbox have already shown interest in leveraging the power of AWS Wavelength.

Expanding AWS Services Portfolio

Amazon’s latest move bodes well for its continued endeavors to expand AWS offerings, which reflects its focus on innovations in cloud services.

Apart from AWS Wavelength, the company recently launched the preview of Amazon Braket, which is a fully-managed quantum computing service that enables customers to explore and experiment with quantum computing hardware.

Additionally, the company announced a service – Amazon Managed (Apache (NYSE:APA)) Cassandra Service at AWS re:Invent. Further, it announced three new security offerings – Amazon Detective, AWS IAM Access Analyzer and AWS Nitro Enclaves.

Further, Amazon recently rolled out AWS Data Exchange that provides quick access to data offered by qualified data providers to customers.

We believe all these strong efforts toward strengthening cloud services portfolio will continue to aid AWS’ market position.

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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