Amazon’s (AMZN) AWS (Amazon Web Services) and Alphabet’s Google Cloud (GOOGL) have launched a jointly-developed multicloud networking service that will enable customers to move their data and applications between clouds with simplified connectivity and improved operational effectiveness. The announcement comes at a time when instances of brief internet disruptions are resulting in major outages.
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AWS, Google Cloud Simplify Multicloud Networking
The companies explained that earlier, customers had to manually set up complex networking components to connect cloud service providers, with this process taking weeks or even months. AWS and Google Cloud’s multicloud networking solution addresses this issue by combining AWS Interconnect – multicloud with Google Cloud’s Cross-Cloud Interconnect to improve interoperability of the two platforms.
The collaboration between the two cloud providers also includes an “open specification” for network interoperability, which will help customers establish high-speed connectivity between Google Cloud and AWS.
The launch of the new service follows the AWS outage on October 20, which hit thousands of websites worldwide. Citing data from analytics firm Parametrix, Reuters noted that the outage is expected to cost U.S. companies losses in the range of $500 million to $650 million.
Meanwhile, Amazon stated that Google Cloud is the first launch partner for its AWS Interconnect – multicloud offering, followed by Microsoft (MSFT) Azure in 2026.
Wall Street’s Ratings on AMZN and GOOGL Stocks
Given AI-related tailwinds, Wall Street has a Strong Buy consensus rating on Amazon and Alphabet stocks. Wall Street’s average price target for AMZN stock indicates 27% upside potential, while the price target for GOOGL stock reflects a downside risk of 2.6%.
AMZN stock has risen 6.3% year-to-date, while GOOGL stock has rallied 69% over the same period.
