) recently announced that it will make its online services for
building and running large software applications, Amazon Web
Services available from data centers in Western China. Amazon has
even entered into definitive agreements with Beijing and Ningxia
governments in this regard.
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Amazon will not operate these new data centers on its own.
Instead, Amazon's services will be offered through local Chinese
data center operators and Internet service providers such as
ChinaNetCenter and SINNET. This, in turn, will bring the services
under Chinese law and not the U.S. law. This will help Amazon to
avoid having to turn over (under the U.S. Patriot Act) any
information that customers would upload to the Chinese cloud
) also follows this practice in China.
Though this is not the first time that Amazon has attempted to
enter the market for cloud computing services in China, yet it is
believed to be a much more coordinated effort. It is not only
trying to pitch for more business from larger corporates but also
to capitalize on the expanding community of smaller and
medium-sized businesses in the country.
Amazon's entry will pose tough competition for Alibaba, which is
considered to be the e-commerce giant in China.
Amazon has gone on to become a veritable consumer electronics
giant from being an Internet retailer initially. The company is
planning to refresh its line-up of Kindle Fire tablets in the
next few months. But Amazon might not stop there. If rumors are
to be believed, the company has many more devices in the works,
including a smartphone, an audio streaming device, and an
) TV competitor.
Though Amazon's hardware competes with both Apple and
), it's much more destructive for the search giant. This is
because Amazon has adopted Google's Android operating system, but
not Google Play.
Currently, Amazon has a Zacks Rank #3 (Hold).