Published: Tue, November 14, 2017
Business | By Max Garcia

China Is Sitting On The Cloud

China Is Sitting On The Cloud

Amazon is committed to establish in China, and is looking forward for significant business opportunities and growth potential for the next few years.

The company's Chinese partner, Beijing Sinnet Technology Co LTD, revealed that it would buy AWS' public cloud computing unit in China for just over $300 million in a recent filing.

According to Synergy, 80% of China cloud services are provided by China companies and about 50% of China based data centres are owned by China-based organisations.

AWS admitted it's selling "certain physical infrastructure assets" to Sinnet, its seller-of-record in the country, as it denied reports that it was pulling out of China.

"In order to comply with Chinese law, AWS sold certain physical infrastructure assets to Sinnet", said AWS earlier today. In China, regulations require Amazon to operate via a local partner before offering the services to customers.

"AWS continues to own the intellectual property for AWS Services worldwide".

Amazon's cloud business in China already faced tougher rules due to China's tight internet controls.

The move casts a shadow over similar foreign ventures in the country. In July, Apple dismissed VPN services from its app store in China.

"We expect other foreign players, such as Oracle and IBM, will also ensure regulatory compliance as long as they want to provide public cloud services in China", said Dai.

Amazon controlled over 40 per cent of the global market for public cloud services in 2016, well ahead of Microsoft Corp and Alibaba, according to Gartner estimates.

China is in the process of strengthening its censorship apparatus - commonly known as the Great Firewall of China - and companies like Amazon appear to be furthering Beijing's ambitions in order to maintain a place in the local market.

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