Amazon.Com, Inc. (NASDAQ: AMZN) is building cloud zones in Southeast Asia to meet customer demand for secure local data storage in their respective countries, according to Amazon Chief Technology Officer Werner Vogels, cited by CNBC.
Last quarter, Amazon Web, a division of Amazon responsible for cloud computing, emerged as a leader in the global cloud services market, accounting for 31% of total cloud spending. This was revealed in a Canalys report released on February 26.
Regions within Amazon Web Services (AWS) are physical locations where data centers are clustered. Each AWS region has at least three availability zones, each with its power, cooling, and physical security. These zones are connected by a redundant, ultra-low-latency network.
Demand for these services comes not only from startups but also from large enterprises and government agencies. Vogels noted that even government institutions are interested in embracing digital transformation trends.
Last November, AWS announced its plans to launch a new region in Malaysia this year. Previously, the company pledged to invest $6 billion by 2037 to support the Malaysian government's ambition to become a high-income digital economy by 2030.
With the launch of this new AWS region, customers who prioritize data residency will be able to securely store their data in Malaysia, experience faster response times, and access various cloud-based services across the Southeast Asia region.
Earlier this year, Amazon Web Services opened cloud regions in Indonesia and Singapore, with plans for infrastructure regions in Thailand. AWS also operates in several regions globally, including North America, South America, Europe, China, Asia Pacific, South Africa, and the Middle East.
Analyses underscore Amazon's leadership in generative AI, predicting significant benefits from AI chip development and broad language models. They also highlight the growth potential in AWS, advertising, and retail excellence.
In terms of growth, AWS posted a quarterly increase of $545 million with an annual growth rate of about 16%, slightly ahead of market expectations of about 15%. Analysts also remain optimistic about Amazon's e-commerce growth, supported by increased online spending in the U.S. and the adoption of new features such as Prime Video advertising and AI advancements to be showcased at the upcoming Worldwide Developer Conference.
Check out the other interesting news on Seasia.co.
