Amazon (AMZN) Expands APAC With New AWS Region in Australia
Amazon’s AMZN cloud computing arm, Amazon Web Services (AWS), launched an infrastructure region in Australia's Melbourne.
The new region marks the company’s second region in Australia and joins the existing region located in Sydney.
Through the AWS Asia Pacific (Melbourne) region, AWS strives to invest $4.5 billion by 2037 and support 2,500 full-time jobs annually.
The underlined region comprises three availability zones, which will aid AWS in delivering low latency, and offering access to its robust cloud service portfolio and technology, including AI, machine learning (ML), data analytics and the Internet of Things to customers in Australia.
The latest move is expected to enable Amazon to gain traction among various customers, including developers, big companies, start-ups, government organizations and non-profit organizations in the country. The underlined region will help them run their workloads seamlessly and store data securely in Australia.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Expanding Asia-Pacific (APAC) Presence
The latest move and rising investment in Australia are in sync with Amazon’s growing efforts toward expanding its AWS footprint in the APAC region.
Apart from the latest move, Amazon recently opened its second AWS region in India, in Hyderabad, which comprises three availability zones.
AWS announced its plans to open a region in Bangkok, Thailand.
It launched a cloud region in the United Arab Emirates, marking the second Middle East region of AWS.
AMZN’s opening of a region in Indonesia’s Jakarta is noteworthy.
AWS intends to set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
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 15.1% between 2023 and 2030.
We believe that Amazon, which currently carries a Zacks Rank #3 (Hold), is well-poised to capitalize on the immense prospects in the APAC cloud market on its increasing number of cloud regions and availability zones.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This is likely to contribute well to the performance of AWS in the days ahead.
Given the boom scenario in APAC, not only Amazon but also its peers like Microsoft MSFT, Alphabet GOOGL and Alibaba BABA are leaving no stone unturned to expand their presence in the region.
Microsoft’s Azure is gearing up for the opening of 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 to comprise multiple availability zones.
Alphabet’s Google has 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, China. The opening of a data center in Singapore is noteworthy.
Google’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year is an uptrend. At present, Google is prepping to open 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 is noteworthy.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
