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Amazon (AMZN) Expands APAC Reach With New Region in UAE
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Amazon’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”), launched a cloud region in the United Arab Emirates (UAE) in a bid to expand its cloud footprint in the Asia Pacific (APAC).
Notably, the new region marks the second Middle East region of AWS.
The new region comprises three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio to customers in UAE.
Hence, the latest move is expected to aid the company in gaining traction among various customers, including developers, big companies, start-ups, developers, government organizations and non-profit organizations in the country.
The launch of second AWS Middle East region is in sync with Amazon’s growing efforts toward expanding AWS in the APAC.
Apart from the latest move, the company recently opened a region in Indonesia’s Jakarta.
It intends to set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
The company is planning to launch a second AWS region in India’s Hyderabad by mid-2022. The region will also comprise three availability zones.
AWS is planning to set up a second AWS region in Australia’s Melbourne, which is expected to be operative in the second half of 2022. It also intends to open an infrastructure region in Tel Aviv, Israel, by 2023.
Growth Prospects, Competitive Scenario
APAC has turned out to be one of the fastest-growing emerging cloud markets.
According to a report from Research and Markets, the cloud market of the APAC region is expected to witness a CAGR of 15.6% between 2021 and 2027.
We believe that Amazon is well-poised to capitalize on the immense growth prospects in the APAC cloud market on the back of its increasing number of cloud regions and availability zones.
This is likely to contribute well to the performance of AWS in the days ahead.
Notably, AWS sales rose 33% year over year to $19.7 billion, accounting for 16% of the total sales in second-quarter 2022.
The Zacks Rank #3 (Hold) company’s growing presence in APAC has intensified the competition for its peers like Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Alibaba (BABA - Free Report) , which are also leaving no stone unturned to expand their presence in the APAC region.
Notably, Microsoft’s Azure gears up to open five data centers in APAC — 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 comprising multiple availability zones.
Meanwhile, Alphabet’s Google recently opened a data center in Singapore, which marks its third such establishment in the country. The company’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year remains a positive.
At present, Google is gearing up to open three cloud regions in the region, which will be located in Malaysia, Thailand and New Zealand. It is also set to introduce cloud regions in Dammam, Saudi Arabi; Doha, Qatar; and Tel Aviv, Israel.
Meanwhile, Alibaba is hugely investing to expand its presence in the cloud market of the underlined region. The launch of Alibaba Cloud’s third data center in Indonesia remains noteworthy.
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Amazon (AMZN) Expands APAC Reach With New Region in UAE
Amazon’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”), launched a cloud region in the United Arab Emirates (UAE) in a bid to expand its cloud footprint in the Asia Pacific (APAC).
Notably, the new region marks the second Middle East region of AWS.
The new region comprises three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio to customers in UAE.
Hence, the latest move is expected to aid the company in gaining traction among various customers, including developers, big companies, start-ups, developers, government organizations and non-profit organizations in the country.
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Expanding APAC Presence
The launch of second AWS Middle East region is in sync with Amazon’s growing efforts toward expanding AWS in the APAC.
Apart from the latest move, the company recently opened a region in Indonesia’s Jakarta.
It intends to set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
The company is planning to launch a second AWS region in India’s Hyderabad by mid-2022. The region will also comprise three availability zones.
AWS is planning to set up a second AWS region in Australia’s Melbourne, which is expected to be operative in the second half of 2022. It also intends to open an infrastructure region in Tel Aviv, Israel, by 2023.
Growth Prospects, Competitive Scenario
APAC has turned out to be one of the fastest-growing emerging cloud markets.
According to a report from Research and Markets, the cloud market of the APAC region is expected to witness a CAGR of 15.6% between 2021 and 2027.
We believe that Amazon is well-poised to capitalize on the immense growth prospects in the APAC cloud market on the back of its increasing number of cloud regions and availability zones.
This is likely to contribute well to the performance of AWS in the days ahead.
Notably, AWS sales rose 33% year over year to $19.7 billion, accounting for 16% of the total sales in second-quarter 2022.
The Zacks Rank #3 (Hold) company’s growing presence in APAC has intensified the competition for its peers like Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Alibaba (BABA - Free Report) , which are also leaving no stone unturned to expand their presence in the APAC region.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Microsoft’s Azure gears up to open five data centers in APAC — 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 comprising multiple availability zones.
Meanwhile, Alphabet’s Google recently opened a data center in Singapore, which marks its third such establishment in the country. The company’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year remains a positive.
At present, Google is gearing up to open three cloud regions in the region, which will be located in Malaysia, Thailand and New Zealand. It is also set to introduce cloud regions in Dammam, Saudi Arabi; Doha, Qatar; and Tel Aviv, Israel.
Meanwhile, Alibaba is hugely investing to expand its presence in the cloud market of the underlined region. The launch of Alibaba Cloud’s third data center in Indonesia remains noteworthy.