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Amazon Triples Its India Cloud Capacity as Race Heats Up


Jun. 11 2019, Updated 9:43 a.m. ET

Amazon opened new cloud availability zone in India

Amazon (AMZN) has opened another cloud availability zone in India, thereby tripling its cloud availability zones and expanding its cloud computing capacity in the country. According to a report from the Business Standard newspaper, Amazon opened the third Indian cloud availability zone in its Mumbai cloud region. Amazon launched the Mumbai cloud region in 2016 with two availability zones. The company now operates 65 cloud availability zones and 21 cloud regions around the world. Microsoft (MSFT) operates 44 cloud regions and has plans to commission ten more clouds regions. Google (GOOGL) and Alibaba (BABA) have around 20 cloud regions and dozens of cloud availability zones each.

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Chinese companies dominate Asia cloud market

The addition of another availability zone in India comes as Amazon battles Chinese rivals for the control of the cloud market in Asia-Pacific. According to a report from Synergy Research, Chinese cloud companies led by Alibaba and Tencent (TCEHY) held a 40% share of the public cloud market in Asia-Pacific in the first quarter. A report from Gartner shows Alibaba captured a 19.6% share of the Asia-Pacific cloud market in 2018, putting it above Amazon with an 11% share and Microsoft with an 8.0% share.

In India, one of the world’s fastest-growing markets for digital products, Amazon is pursuing a cloud revenue opportunity projected to triple to $7.1 billion by 2022, according to Nasscom estimates cited by Mint newspaper. With an additional cloud availability zone in India, Amazon should be able to better serve its cloud customers in India.


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