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Amazon.com Inc.’s AMZN cloud computing arm, Amazon Web Services (“AWS”) is focused on bolstering its presence in the cloud industry through international expansion.
Reportedly, Amazon Web Services plans to expand its presence in Indonesia. It aims to invest 14 trillion rupiah (or $944.5 million) over the next 10 years in the country.
This expansion will boost the customer base of AWS and enhance the brand’s presence in the Asia Pacific region. This will further drive the top line of the company.
Coming to price performance, Amazon has outperformed the industry it belongs to over the past year. Shares of Amazon have gained 103.8% compared with the industry’s growth of 41.5% in the said period.
Cloud Holds Promise
Cloud still remains an expanding market with high growth prospects. In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. We believe that Amazon, with its ongoing initiatives, is well poised to grab the growth opportunity.
Indonesia has been witnessing a strong demand for cloud-based services. There has been a rise in the adoption of cloud computing in the country.
According to a market research report, Indonesia is expected to witness the fastest growth among the ASEAN countries. Growth in mobile consumption and increasing demand for disaster recovery services will drive the cloud market in Indonesia.
Hence, Amazon’s decision to expand in this country is the right move.
AWS Gaining Traction
Amazon is gaining momentum with growing cloud business. AWS is gaining traction with its expanding clientele to new countries, courtesy of its continuous efforts to improve offerings. The company is actively exploring the Asia Pacific market, in the interest of tapping the opportunities therein.
In the last reported quarter, AWS generated $4.6 billion, growing more than 40% year over year in each of the last five quarters. It generates considerably stronger margins than the traditional retail business, which is a big positive. AWS is gaining momentum with customers including Adobe, GE Oil & Gas, Kellogg’s, Airbnb, hilips, Pinterest, Spotify, Tata Motors, Unilever, McDonalds, BMW, British Gas, Capital One, US Department of State and USDA Food and Nutrition Service.
AWS is becoming popular due to its reliability and innovative services like AWS machine learning, Amazon SageMaker, Amazon Aurora, AWS Secrets Manager and many more.
We note that Amazon’s continuous efforts toward expanding its presence worldwide will help in sustaining its leadership position in the cloud market. Furthermore, expansions are strengthening Amazon’s competitive position against global rivals such as Microsoft and Alibaba.