Amazon Web Services maps out new strategy for China

AWS is the frontrunner in cloud computing architecture.

said, Wall Street Journal, article

Amazon Web Service (AWS) said at the 2021 Amazon Cloud Technology China Summit that it will develop new partners and services to cement its presence in the country.

AWS described its new strategy as “rooting” the business locally while leveraging its “global advantage.” It will target three types of clients—local companies, multinational corporations in China, and domestic firms with overseas business—said vice president and general manager of AWS China, Elaine Chang, at the conference.

Some companies lack IT talents to digitize their operations, so AWS will dispatch technical personnel to assist with tapping into its cloud services, artificial intelligence, big data capabilities, and other services.

In order to provide Chinese customers with globally competitive cloud services, AWS and its local operators—Beijing Sinnet Technology and Ningxia Western Cloud Data Technology—have developed facilities in the country’s capital and Ningxia. New sign-ups for AWS’ services in China in the first six months of 2021 were 50% higher than the same period last year.

AWS maintains the leading position in the cloud computing infrastructure market, the Wall Street Journal reported in June. By renting out computing, storage, and network capabilities to users, AWS’s revenue is more than double that of Microsoft, the second largest provider of cloud computing services.

AWS’s annual revenue could reach an estimated USD 54 billion based on the company’s performance in Q1 2021, which increased 32% year-on-year. If AWS were a standalone company, it would rank among the top five in the IT industry globally, Chang said.

At the summit, AWS said it will deepen cooperation with Deloitte China, building upon a strategic partnership formed in 2018. Focusing on industries like automobile, finance, retail, and life sciences, the two companies will jointly provide one-stop consulting services for multinationals entering China as well as data security and analytics services.

KrASIA Connection features translated and adapted content published by 36Kr. This article was originally written by Su Jianxun for 36Kr and was adapted for KrASIA by Jiaxing Li.

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