) recently announced the launch of its cloud-based storage
service from Amazon Web Services (AWS) in Australia, thus further
expanding its data centers in the Asia-Pacific region.
Amazon now has nine data centre hubs across the world and
three data centers in the Asia Pacific for AWS. Management stated
that over 10,000 customers in Australia and New Zealand were
already using AWS and the launch of this new cloud computing
platform will further expand the AWS consumer base in the
The new Australian data center will provide customers access
to services including EC2, Amazon RDS, Amazon CloudFront and S3.
Additionally, management also plans to open a local technical
support operation in Australia next year.
Earlier, companies incurred significant costs to build their
own infrastructure for data storage. They had to make a
substantial payment upfront, after which they would invest
further to purchase additional storage space anticipating growing
backup demand. This resulted in under-utilized capacity and
unnecessary expenses. With Amazon's cloud-based storage services,
companies now do not need to waste time and money on managing
their own data centers.
Cloud storage came into prominence in 2009, with Nirvanix and
Amazon's Simple Storage Service (S3) being two of the major
pioneers. Since then, Amazon has continued to dominate the space,
with other players like
) offering their own solutions.
Amazon serves developers through AWS, which provides access to
technology infrastructure that developers can use to enable
various types of virtual businesses.
The company is expanding AWS internationally and investing
heavily in technology infrastructure to support rapid growth. We
remain extremely positive about AWS's growth prospects and expect
Amazon to remain one of the leading players in the fast-growing
In the recently reported third quarter, the company suffered a
huge loss of 60 cents due to its investment focus. Though these
investments are impacting near-term margin and earnings growth,
Amazon is expected to benefit in the long term as there is
significant growth potential in both domestic as well as
Currently, Amazon has a Zacks #4 Rank, which implies a Sell
rating in the near term.
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