AWS outage ’underscores the backbone role cloud plays’: BMO

Published 2 weeks ago Positive
AWS outage ’underscores the backbone role cloud plays’: BMO
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Investing.com -- BMO Capital said Amazon Web Services’ (AWS) recent disruption was “one of the most significant disruptions in AWS history,” warning that it “underscores the fragility of global commerce when cloud providers face outages.”

In a note, analyst Brian Pitz said the event “underscores the backbone role cloud plays” and that it “could help incentivize continued investments behind multi-cloud adoption, benefiting smaller cloud vendors like GCP.”

According to BMO Capital, while the incident was major, “we do not expect material churn.”

Instead, the analyst believes the outage could renew interest among enterprises in diversifying their cloud dependencies.

Elsewhere, the note added that Amazon “is to roll out smart glasses for its delivery workers,” describing it as part of the company’s broader push into automation and wearable tech.

“We remain bullish on smart-enabled glasses, but see hurdles to overcome before the technology can replace mobile devices,” BMO Capital said.

The report also covered broader developments across the tech landscape, including AI and gaming, noting that Anthropic and Google announced a deal worth tens of billions of dollars in which Google Cloud will provide Anthropic with 1M TPUs.

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