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Amazon’s cloud business to launch in Hong Kong as competition with Chinese rivals heats up

  • The latency for Hong Kong businesses using Amazon Web Services’ infrastructure in the city could be reduced from 100 milliseconds to 10 milliseconds

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Werner Vogels, the chief technology officer at Amazon.com. Photo: Handout
Zen Soo

Amazon Web Services (AWS), the world’s largest cloud services provider, has launched data centres and cloud infrastructure in Hong Kong as it looks to ramp up the services it provides to users in the Asia-Pacific.

The expansion allows AWS’ customers in the city to access data stored in the cloud with lower latency, meaning companies can more efficiently run applications critical to their business thanks to a much faster transfer of data following an instruction.

Hong Kong, the eighth market in the Asia-Pacific for AWS, will have three locations of data centre clusters. Previously, local customers using AWS cloud services had to store their data in other locations, such as Singapore or Tokyo.

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The launch of AWS in Hong Kong comes as competition heats up in the region, with rivals Alibaba Cloud and Tencent Cloud opening operations in the city in 2014 and 2017 respectively.

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According to a Gartner report released on Wednesday, Alibaba Cloud was the market leader in Asia-Pacific for services such as infrastructure-as-a-service (IAAS) as well as infrastructure utility services (IUS) in 2018. Alibaba Cloud commands nearly 20 per cent of the market, compared to 11 per cent for AWS and Microsoft’s 8 per cent.
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