Amazon (AMZN) to Boost APAC Reach With AWS Region in Thailand
Amazon AMZN continues to dominate the global cloud computing space on the back of an increasing number of availability zones and regions served by Amazon Web Services (AWS).
This is evident from AMZN’s latest plans to open a region in Bangkok, Thailand.
The new region comprises three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio and technology, including AI, machine learning (ML), data analytics and the Internet of Things to customers in Thailand.
The latest move is expected to enable Amazon to gain traction among various customers, including developers, big companies, start-ups, developers, government organizations and non-profit organizations in the country. The underlined southeast Asian region will help them run their applications and serve end users from local AWS data centers.
This apart, AMZN intends to launch an AWS Local Zone in Bangkok.
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Expanding Asia-Pacific (APAC) Presence
The recent plans and rising investment regarding AWS in Thailand are in sync with Amazon’s growing efforts toward expanding its AWS footprint in the APAC region.
Apart from the latest move, Amazon recently launched a cloud region in the United Arab Emirates (UAE), marking the second Middle East region of AWS.
AMZN’s opening of a region in Indonesia’s Jakarta remains noteworthy.
Amazon intends to set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
The second AWS region in India, Hyderabad, which also comprises three availability zones, is set to be operational by this year-end.
AWS is planning to set up a second AWS region in Australia’s Melbourne, which is expected to be operative in the second half of 2022. It also intends to open an infrastructure region in Tel Aviv, Israel, by 2023.
Key Prospects, Competitive Scenario
APAC turned out to be one of the fastest-emerging cloud markets.
Per a Research and Markets report, the cloud market of the APAC region is expected to witness a CAGR of 15.6% between 2021 and 2027.
We believe that Amazon is well-poised to capitalize on the immense prospects in the APAC cloud market on its increasing number of cloud regions and availability zones.
This is likely to contribute well to the performance of AWS in the days ahead.
AWS sales rose 33% year over year to $19.7 billion, accounting for 16% of the total sales in second-quarter 2022.
However, this presently Zacks Rank #4 (Sell) company faces stiff competition from its peers like Microsoft MSFT, Alphabet GOOGL and Alibaba BABA, which are also leaving no stone unturned to expand their presence in the APAC region.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft’s Azure gears up for opening five data centers in APAC, namely Southcentral India, Indonesia Central, Malaysia West, New Zealand North and Taiwan North, which will be located in Hyderabad, Jakarta, Kuala Lumpur, Auckland and Taipei, respectively.
Recently, Microsoft Azure launched a cloud availability region in China, namely China North 3, which marks the fifth of its kind in the country and the first comprising multiple availability zones.
Alphabet’s Google recently announced that it is about to open a data center in Japan in 2023, marking its third such establishment in Asia. The facility will be located in Inzai, Chiba. The opening of a data center in Singapore too remains noteworthy.
Additionally, Amazon’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year is an uptrend. At present, Google is prepping for opening three cloud regions in APAC, which will be located in Malaysia, Thailand and New Zealand. It is also set to introduce cloud regions in Dammam, Saudi Arabia; Doha, Qatar and Tel Aviv, Israel.
Alibaba is hugely investing in expanding its presence in the cloud market of the underlined region. The launch of Alibaba Cloud’s third data center in Indonesia remains noteworthy.
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