Amazon has been growing exponentially over the past few years. In America, it is certainly one of the most notable forces to be reckoned with within the business world, but it is also making an impact overseas, particularly with its extensive range of Cloud computing services for businesses. Amazon announced that it will open a new region to cater to the Chinese markets. The announcements have certainly rocked a few chairs: breaking into the Chinese market might not be easy, particularly because the local industry is already quite well-developed, and there are many local players providing cloud computing services to Chinese companies, governmental institutions and other enterprises.
How is Amazon going to fare in this relatively new and untapped market?
It’s quite difficult to predict the long-term success of the endeavor at this particular stage, but there are many things that can be already observed. In addition to Amazon expanding its cloud presence in the country, its web services branch also established a new partnership with Ningxia Western Cloud Data Technology co. This particular partnership will enable Amazon to build a whole new cloud region in China, thus, significantly expanding its market.
On December 12, 2017, Amazon has opened a second cloud-computing datacenter complex in China. Amazon Web Services (AWS) partnered with Ningxia Western Cloud Data Technology Co. Ltd. for the new center, based in the Northern Chinese city of Ningxia. China is now the only country outside the U.S. where AWS operates two separate regions. Its first Chinese region, known as Beijing region, operates in partnership with Beijing Sinnet Technology Co. AWS said the Ningxia will provide service in China, and serve as the foundation for new cloud initiatives in Western China. AWS provides technology and expertise to its Chinese partners, who manage customer relations.
It is no secret that China’s economy is growing at an increasingly fast pace. The far eastern country is now home to a potentially lucrative market, where foreign businesses are interested in tapping in and enjoy a slice of the case. This is particularly true in the world of IT, and specifically, in the world of Cloud Computing, which is a relatively new branch of services.
Amazon has a really incredible track record, but the Chinese market is already quite established, with local operator accounting for up to 80% of total revenues in the cloud industry. It might seem that with such figures, there might be no room for another major player, but there are also signs that public cloud spending in China is increasing exponentially. It has been estimated that cloud spending in the country has increased to over 55.6% in just about one year, according to information gathered by IDC.
These trends stand out as a sign that the market for cloud services is there, as many more Chinese businesses are on their way to modernize their infrastructure and embrace modern technology to save time, cut costs and enhance the flexibility of their workflow.
There are many other companies who already offer cloud services in China, and that are very well established within the local market. A couple of the most prominent competitors that Amazon will need to face are namely Alibaba, as well as Tencent. These are only a couple of names in a country where the market of Cloud Computing services is steadily on the rise.
AWS is quickly expanding throughout the world, with the aim to cater to more and more customers across several country. In particular, the South Asia and Pacific regions are experiencing quite a stark expansion, and the Chinese market could become Amazon’s mail hotspots in the Far East. In spite of the new expansion, Amazon is certainly not new to the Chinese market. Some time ago, Amazon was able to put a nice foothold in the Beijing region, particularly thanks to its partnership with Sinnet. According to Amazon, in fact, there are already many relevant businesses and corporations based in China, who are already relying on cloud computing services from Amazon. According to the American company, the giant is already serving major global brands the likes of Lenovo, Samsung Electronics, Xiaomi, and many others.
With such influential players reportedly adopting Amazon Cloud Services, the way to an expansion could be quite clear and set.
In conclusion, the Chinese cloud computer market definitely stands out as one of the fastest-growing in the world. As many businesses are steadily following the path of modernizations, new IT services are particularly on-demand, and many local and international players are fiercely competing with one another for a prime chunk of the market.
It is interesting to consider that China’s rapid expansion in terms of its IT/Cloud Computing market might be seen as an indication of an upward trend, which might soon be followed by other significant players in other Asian countries. In the not too distant future, Asia might grow to become one of the leading cloud computing markets, and it is not surprising that these countries are already attracting the interest and efforts of many foreign investors and major companies who are trying to secure a foothold in a market that they simply cannot afford to miss out on. It is quite clear that the future
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