Abstract : Amazon Web Services, the cloud service platform of Amazon, will increase its investment in the burgeoning cloud computing market in China and accelerate its steps to offer more cloud services in a bid to promote the digital transformation and upgrading of Chinese enterprises.
Amazon Web Services, the cloud service platform of US-based
technology giant Amazon, will increase its investment in the burgeoning
cloud computing market in China and accelerate its steps to offer more
cloud services in a bid to promote the digital transformation and
upgrading of Chinese enterprises.
The market size of China’s cloud computing industry is huge, but the
segment is still in its infancy, said Gu Fan, general manager of product
management and go-to-market strategy at AWS China, adding that he has
great confidence in the country’s cloud services market.
“We have seen that some Chinese internet companies and fast-growing
startups engaged in healthcare, education and media have increasing
demands for cloud services. AWS is committed to helping Chinese
enterprises digitize and innovate their operations, as well as
accelerate the transformation of traditional businesses,” Gu said.
He added that a growing group of domestic enterprises use the global
infrastructure and cloud services of AWS to empower their globalization
push and make them more agile with lower costs.
Gu said AWS will speed up the establishment of more cloud services in
China so as to cater to demand from Chinese customers and provide
tailor-made solutions for the Chinese market. It launched more than 150
cloud computing services and features in the country in the first half.
Moreover, the company will help multinationals tap into the Chinese market.
“It is noteworthy that during the COVID-19 pandemic, online
conferencing, telecommuting and drug research and development boosted
the business growth of AWS, driving more enterprises to have access to
cloud services and go digital,” Gu added.
The China Academy of Information and Communications Technology said
the public cloud services market in China reached 68.9 billion yuan
($10.5 billion) in 2019, up 57.6 percent from 2018. It is expected that
the market will grow rapidly over the next three years and reach 230.7
billion yuan by 2023.
China is one of AWS’ largest business geographies. It set up AWS
China (Beijing) Region, operated by Beijing Sinnet Technology Co Ltd, in
2016, and AWS China (Ningxia) Region, operated by Ningxia Western Cloud
Data Technology Co Ltd, in 2017.
AWS now offers over 175 fully featured services such as computing,
storage, databases, networking, analytics, robotics, machine learning
and artificial intelligence from 77 availability zones within 24
geographic regions around the world.
“AWS is setting an aggressive pace in the global market for cloud
innovation and global expansion. In China it has also been accelerating
its investment in the region. This is effectively enabling enterprise
builders in China to power adaptive enterprises on a massive scale,”
said Charlie Dai, a principal analyst at Forrester, a business strategy
and economic consultancy.
It also demonstrates that prioritizing localization strategy is
critical for both enterprises and vendors targeting the China market to
survive uncertainties, Dai said.
Favorable policies on cloud computing also promoted the sector’s
rapid development in the country. The Ministry of Industry and
Information Technology issued a guideline in 2018 proposing that by
2020, cloud computing will be widely used in the production, operation
and management of enterprises, and there will be 1 million more
enterprises using cloud computing in China.
Global cloud infrastructure services spending in the third quarter of
this year continued to benefit from the fallout of the COVID-19
pandemic. The worldwide cloud market grew 33 percent to $36.5 billion,
which was $2 billion higher than that of the previous quarter, according
to research firm Canalys.
The consultancy said China is the world’s second-largest market for
cloud infrastructure services. Alibaba Cloud, the cloud computing arm of
Alibaba Group, accounted for 46.4 percent of China’s cloud computing
market last year, followed by Tencent Cloud (18 percent) and Baidu Cloud
(Source: China Daily)
About Xinhua Silk Road
Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal.China’s silk road economic belt and the 21st century maritime silk road website,includes BRI Policy,BRI Trade,BRI Investment,Belt and Road weekly,Know Belt and Road,and the integrated information services for the Belt and Road Initiative (BRI).
Source: Amazon unit eyeing bigger piece of burgeoning cloud services industry in China