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Amazon Plans for Indonesian Region to Boost Base in APAC

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Amazon (AMZN - Free Report) continues to dominate the global cloud computing space on the back of its increasing number of availability zones and regions of Amazon Web Services (“AWS”).

This is evident from the company’s latest announcement wherein it notified its plans to set up an infrastructure region in Indonesia, marking its ninth such establishment in the Asia Pacific (APAC) region.

Notably, the new region, which is expected to be operative by 2021 end or early 2022, will be located in Jakarta. The company aims to strengthen the cloud infrastructure in Indonesia with the aid of lower latency networks of its availability zones.

Per the plans, this Jakarta region will comprise the three availability zones, which will help its customers achieve the robust fault-tolerance by running their designed applications on these zones.

Further, this will assist AWS’ traction among the startup ecosystem, big enterprises and the country’s government agencies.

Expanding AWS Global Presence

AWS’ latest move bodes well for its strong focus on fortifying its cloud footprint on the international territories.

Apart from its upcoming Indonesian region, the company is gathering resources to open a region in Hong Kong SAR. Moreover, it already has infrastructure regions in Beijing, Mumbai, Ningxia, Seoul, Singapore, Sydney and Tokyo.

At present, AWS’ infrastructure regions across the globe totals 20, offering 61 availability zones. The company is set to roll out additional 12 Availability zones across its regions, namely Bahrain, Hong Kong SAR, Italy and South Africa.

This apart, the company announced its plans to open an infrastructure location in Colombia, marking its fourth such establishment in Latin America.

We believe, all these strong endeavors will continue to aid its leading market share in the cloud market.

Rising Competition in APAC

APAC region is one of the biggest emerging markets in the cloud industry and therefore, the market is capable of attracting big cloud providers to bolster their presence in it.

Recently, Alibaba’s (BABA - Free Report) cloud arm doubled its cloud capabilities in Indonesia by opening its second data center in the country.

Further, Alphabet’s (GOOGL - Free Report) Google Cloud is leaving no stone unturned to capitalize on the huge growth prospects in this particular region. The company recently opened an infrastructure region in Hong Kong, marking its sixth such zone in APAC. Further, the company is gearing up for opening a region in Jakarta, Indonesia.

Additionally, Microsoft’s (MSFT - Free Report) Azure has cloud regions and locations across many APAC countries like China, India, Japan, Korea and Australia to name a few.

Nevertheless, AWS’ expanding reach in the APAC cloud space will continue to boost its position in this region.

Currently, Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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