Amazon Stock (NASDAQ:AMZN)
Amazon Web Services (AWS), the cloud computing division of online retail giant Amazon (NASDAQ:AMZN), has opened an infrastructure zone in the city of Melbourne, Australia.
The new region is the second one that the company has established in Australia, and it will be joining the region that is already established in Sydney.
AWS aims to sustain 2,500 full-time employment annually and invest $4.5 billion through the AWS Asia Pacific (Melbourne) region by the year 2037.
Customers in Australia will have access to AWS’s extensive cloud service portfolio and technology, including artificial intelligence (AI), machine learning (ML), data analytics, and the internet of things, thanks to the underlined region’s inclusion of three availability zones. This will also assist AWS in meeting its goal of providing customers with low latency.
It is anticipated that Amazon would be able to acquire traction among various clients in the country as a result of their most recent move. These customers include software developers, large corporations, start-ups, government agencies, and non-profit organizations. They will be able to execute their workloads more smoothly and store their data more safely in Australia, thanks to the highlighted region.
Increasing Presence Across Asia and the Pacific (APAC)
Amazon’s most recent move and increasing investment in Australia are in line with the company’s growing attempts to expand its AWS footprint in the APAC region.
In addition to this most recent move, Amazon just inaugurated its second Amazon Web Services (AWS) region in India, which is located in Hyderabad and consists of three availability zones.
AWS has revealed that it intends to launch a new area in Bangkok, which is located in Thailand.
It marked Amazon Web Services’ second region in the Middle East with the debut of its cloud region in the United Arab Emirates.
It is significant that Amazon has opened a region in the capital city of Indonesia, Jakarta.
Amazon Web Services has the intention of establishing an infrastructure area in the city of Auckland, which will consist of three availability zones.
Additionally, by the year 2023, it plans to launch an infrastructure region in Tel Aviv, which is located in Israel.
Amazon Stock Prospects and Competition
It found out that APAC was one of the cloud markets that was developing the quickest.
According to a report by Research and Markets, the cloud market in the APAC region is projected to experience a compound annual growth rate (CAGR) of 15.1% between the years 2023 and 2030.
Amazon is well-positioned to capitalize on the immense prospects in the APAC cloud market on its increasing number of cloud regions and availability zones.
In the days ahead, it is very likely that this will contribute favorably to the performance of AWS.
In light of the current prosperous climate in Asia Pacific, not only Amazon but also its competitors such as Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), and Alibaba (NASDAQ:BABA) are not leaving any avenue of expansion in the region unexplored in their pursuit to grow their presence there.
Microsoft’s Azure is getting ready to launch five new data centers in the Asia-Pacific region. These data centers will be situated in Hyderabad, Jakarta, Kuala Lumpur, Auckland, and Taipei, respectively. Southcentral India, Indonesia Central, Malaysia West, New Zealand North, and Taiwan North are the names of these five new data centers.
Microsoft Azure has just recently introduced a new cloud availability area in China called China North 3. This new region is the fifth of its kind to be made available in China, and it is the first of its kind to include several availability zones.
Google, which is owned by Alphabet, has just lately revealed that it will be opening a data center in Japan in 2023. This will be the company’s third facility of this kind in Asia. Inzai, which is located in China, is going to be the site of the project. It is important to mention that a data center has just opened in Singapore.
A step in the right direction was taken by Google in 2017 when the company opened cloud regions in New Delhi, India, and Melbourne, Australia. At the moment, Google is working on getting ready to launch three cloud regions in the APAC region. These cloud regions will be situated in the countries of Malaysia, Thailand, and New Zealand. Additionally, cloud areas are going to be introduced in the cities of Dammam, Qatar; Doha, Saudi Arabia; and Tel Aviv, Israel.
Alibaba is making significant investments in extending its footprint in the cloud market of the highlighted region in order to grow its business. It is important to note that Alibaba Cloud has just opened its third data center in Indonesia.
Amazon stock has already gained 13% year-to-date and is poised for a strong year.
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