Amdocs Collaborates With Amazon Web For AmdocsONE Launch

In a concerted effort to improve the business agility of Communications Service Providers in a cloud-based environment, Amdocs Limited (NASDAQ:DOX) formed a strategic collaboration with Amazon Web Services, a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN) . The partnership will enable Amdocs to develop solutions that would help the service providers to better adapt to the digital world in a cost-effective way.

According to a survey conducted by research firm, Analysis Mason, more than 90% work of Communications Service Providers will run on cloud by 2022. This would require a smooth transition into an optimized hybrid cloud operational environment. In order to bridge this digital divide, Amdocs intends to launch AmdocsONE — an open, modular and integrated solution set with a rich set of capabilities built on cloud-native and microservices technologies and delivered with DevOps practices.

The collaboration with Amazon Web Services will facilitate the easy access of AmdocsONE and will help the service providers to modernize their operations on an outsourced basis, thereby lowering costs. In addition, Amdocs aims to use state-of-the-art technologies around open source, hyper-scale systems and elastic network scaling to create cloud-native environments for testing new offerings and disruptive business models. These, in turn, will likely lead to faster time to market and greater business agility for the service providers with simple, contextual and valuable customer interactions at every point of engagement across all channels.

Leveraging industry-specific best practices and methodologies, AmdocsONE follows a low-risk approach for a series of short, business-defined projects with predictable cost and scope, delivering superior business value. With an open and modular structure, it also offers great flexibility to the service providers to choose the modules that they want in order to bridge the gap between these new modules and their legacy systems.

With strategic acquisitions and collaborations, Amdocs has evolved as a unique vendor providing both end-to-end business support solutions and operating support solutions to the carrier marketplace. The company continues to boost shareholders’ wealth by continuously repurchasing shares and paying regular dividends to its shareholders. Moreover, the company has increased its quarterly dividend by 13.6% to 25 cents per share. Amdocs expects to deliver total return to shareholders in mid to single high digits for the seventh consecutive year in fiscal 2018.

However, the company has underperformed the industry in the last three months with an average return of 3% compared with a gain of 5.6% for the latter. It remains to be seen how the stock performs in future with the new product offering.

Amdocs carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the industry are CoStar Group, Inc. (NASDAQ:CSGP) and Fair Isaac Corporation (NYSE:FICO) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CoStar Group has a long-term earnings growth expectation of 16.8%. It delivered an average positive earnings surprise of 18.3% in the trailing four quarters, beating estimates thrice.

Fair Isaac has a long-term earnings growth expectation of 10%.

Zacks Top 10 Stocks for 2018

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?

Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp (NYSE:FMC). and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2018 today >>