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Amazon's cloud computing unit is increasingly moving into Asia after opening a data center in Hong Kong this week, adding to the seven existing sites where it currently operates in the region Asia-Pacific and China.
This new entry will likely give the US giant a boost in its regional battle with Alibaba's cloud service, which, according to a new Gartner report, was the largest cloud infrastructure provider in Asia-Pacific last year. But this will not be the case with all countries, especially China, where cards are often stacked against foreign players.
Amazon Web Services has been operating in China for some time, albeit by bumpy and diverted roads. A set of cybercrime laws promulgated by Beijing in mid-2017 required foreign companies to store data locally and outsource their hardware components to Chinese partners. As a response, AWS is partnering with two separate local suppliers based in Beijing and Ningxia Province, in the backcountry, to manage its cloud service, while providing 'technology, advice and expertise "needed by allies. In practice, AWS users in China are subject to the terms and conditions defined by their national partners.
With two data hubs, AWS managed to capture a 6 percent share of China's public cloud market as an infrastructure service in the first half of 2018, according to research firm IDC. Alibaba earned a considerable advance of 43%, exceeding the sum of the players ranked from second to ninth place.
The main badet of Alibaba Cloud, as well as many other Chinese offers, is its affordable price. "Whether it's the price or the service, AWS is really at a disadvantage in China," said Lin Rong, who runs a website called 91Yun, which reviews cloud services and runs a forum on cloud computing, said TechCrunch.
Meanwhile, a growing number of Chinese companies are looking to host their servers in neighboring countries for global deployment as they deploy their apps, mobile games, and other Internet services to them. 39; abroad. Hong Kong is a popular accommodation destination for export companies, but even on the other side of the border, Alibaba has been a leading choice for many Chinese companies.
As on the continent, Alibaba Cloud services in Hong Kong are cheaper than those of its international competitors; He also notes that this solution provides mainland users with lower latency than AWS, thanks to its links with the three main network providers in China.
At the very least, the intrusion of AWS in Hong Kong will intensify competition between cloud services for local businesses. According to Keith Yau, founder of Bootdev, a cloud-based platform for website management, cloud competition is also fierce in the world.
"Hong Kong now has all the major cloud computing companies – Azure, AWS and Alibaba Cloud – as well as the Google Cloud platform, which is very unusual for any city in the world," he told TechCrunch. .
Hong Kong, as a hub of international trade and financial services, in conjunction with recent government efforts to attract more technology-based companies, is generating significant demand for storage power and data processing. Amazon, "the best technology among all cloud services," suggested Cyrus Wong, data specialist at the Hong Kong Institute of Professional Education, is expected to win some of the existing players.
"Hong Kong is globally recognized as a leading financial technology center and one of the best places where startups develop their businesses. This is why many customers have asked us to create an AWS region in Hong Kong in order to expand their business in the global market. the largest and most comprehensive cloud functionality, "said Peter DeSantis, vice president of global infrastructure and customer support for AWS.
According to the Gartner Report, AWS is currently ranked second behind Alibaba Cloud in the Asia-Pacific region. Its share declined from 0.2% to 11% in 2018, while Alibaba Cloud added 4.7% to increase its share to nearly 19.6%.
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