AWS partnerships provide opportunities in cloud, data center: BofA

Amazon Web Services (NASDAQ:AMZN) CEO Matt Garman said partnerships and providing its customers with more choices make his company more competitive.

At the Goldman Sachs Communacopia and Technology Conference, he highlighted that AWS data centers offer customers not only AWS’ line of chips, including the Graviton and Trainium, but also hardware from Nvidia (NVDA) and AMD (AMD).

“Despite concerns on AI related disruption to AWS’ strong Cloud industry position, commentary suggests optimism on AI related demand and differentiated AWS AI infrastructure to drive client wins,” said Bank of America analysts, led by Justin Post, in an investor note. “Also, Amazon is walking a fine line between promoting its own cost-efficient infrastructure, and featuring NVIDIA’s strong GPU capabilities, but believes customer choice is a differentiated and compelling offering.”

Yesterday, Oracle (NYSE:ORCL) announced a new database partnership with AWS called Oracle Database@AWS, which connects Oracle’s Autonomous Database & Exadata Database and AWS applications. It will roll out in 2025, and run on dedicated infrastructure between the two clouds.

BofA finds this as another example of AWS taking advantage of partnerships to expand opportunities.

“Oracle and AMZN had been competitive for database customers, so the new partnership suggests companies have a lot to gain by working together,” Post said. “We think all cloud providers have a sizable opportunity to unlock demand for infrastructure/applications using data housed within Oracle’s databases.”

BofA maintains its Buy rating on Amazon and a price objective of $210.

Oracle was surging 9% during pre-market trading Tuesday, while Amazon inched up about 1.5%.