On Tuesday, Verizon (VZ) - Get Report joined a growing list of large enterprises to announce that they're moving a large chunk of their existing server workloads to Amazon (AMZN) - Get Report Web Services (AWS). Expect plenty of similar announcements in the months and years to come.
It's not just cost savings that are driving such moves, or even a desire by CIOs and other execs to rid themselves of the headache of managing their own infrastructures. Both enterprises and Internet firms are realizing that using public clouds allows them to deploy new apps and services more quickly, as well as gain access to advanced services that aren't available for use elsewhere.
And while cloud competition is intense in many respects, AWS has an edge when it comes to mega-deals such as the one just announced with Verizon, thanks to its huge global footprint and unmatched feature set and ecosystem.
Disney (DIS) - Get Report , Expedia (EXPE) - Get Report , Turner, Comcast (CMCSA) - Get Report , GoDaddy (GDDY) - Get Report , GE (GE) - Get Report , Capital One (COF) - Get Report , Netflix (NFLX) - Get Report (yes, Netflix) Salesforce.com (CRM) - Get Report and Workday (WDAY) - Get Report disclosed similar moves in the past. While other business units and large enterprises followed the same path, but chose to keep them private.
Jim Cramer and the AAP team hold positions in Amazon and Comcast for their Action Alerts PLUS Charitable Trust Portfolio.