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Amazon (AMZN) to Boost APAC Reach With AWS Region in India

Amazon’s AMZN cloud-computing arm Amazon Web Services (AWS) launched a new cloud region in India to expand its cloud footprint in the Asia Pacific (APAC).

The new region marks the second Indian hub for AWS, located in Hyderabad.

The AWS Asia Pacific (Hyderabad) region comprises three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio to customers in India.

Hence, the latest move is expected to help the company gain traction among various customers, including developers, big companies, start-ups, developers, government organizations and non-profit organizations in the country.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Expanding APAC Presence

The launch of a second AWS Indian region is in sync with Amazon’s growing efforts to expand AWS in the APAC.

Additionally, Amazon recently launched the second Middle East region of AWS which is located in the United Arab Emirates (UAE).

AMZN also opened a region in Indonesia’s capital Jakarta.

It intends to set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.

AWS is planning to set up a second AWS region in Australia’s Melbourne, which is expected to be operational in the second half of 2022. It also aims to open an infrastructure region in Tel Aviv, Israel, by 2023. Additionally, it is set to unveil an AWS site in Thailand.

Key Prospects, Competitive Scenario

APAC turned out to be one of the fastest-evolving cloud markets.

Per a Research and Markets report, the APAC region’s cloud market size 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 the back of its increasing number of cloud regions and availability zones.

This is likely to contribute well to AWS’ performance in the days ahead.

AWS sales rose 27% year over year to $20.5 billion, accounting for 16% of the total sales in third-quarter 2022.

The currently Zacks Rank #3 (Hold) player’s growing presence in the APAC belt intensified the competition for its peers like Microsoft MSFT, Alphabet GOOGL and Alibaba BABA, which are also leaving no stone unturned to expand their presence in the targeted 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 the 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, marking the fifth of its kind in the country and the first to comprise multiple availability zones.

Alphabet’s Google recently opened a data center in Singapore, marking its third such establishment in the country. GOOGL’s launch of cloud regions in India’s New Delhi and Australia’s Melbourne last year remains a positive.

At present, Google is readying to open three cloud regions in the region, 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 investing heavily 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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