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Amazon Web Services' Strategy in China

  • April 2014
  • -
  • DatacenterDynamics

This case study explores the business model and strategy being pursued by Amazon Web Services in China. In December 2013, Amazon Web Services, an Amazon.com company, announced the launch of a China (Beijing) Region for its AWS cloud computing platform. The new location in China is the fourth AWS Region in Asia-Pacific and the tenth such Region in the world. Customers in China had previously been using AWS services delivered via other Regions in the US, Europe, South America, and Asia. With the launch of AWS China Region, these customers will be able to run their applications on infrastructure in China, which significantly reduces latency to local end users and ensures that companies that need to store their data in China can do so.

Before the launch, AWS signed an MOU with the Beijing Municipal Government, the Ningxia Autonomous Region Government, and its strategic partner, the Cloud Valley, which is owned by China Broadband Capital. The MOU reflected the signing parties’ intent to construct and develop high-performing, reliable, and affordable AWS cloud computing services that use facilities and resources in Beijing and Western China, through the innovative ‘front-shop-back-factory’ model.

Table Of Contents

Amazon Web Services' Strategy in China
Executive Summary
Overview
Business Model
AWS Deployment Models
Market Strategy
Competitive Environment
Conclusion

Tables and Figures
Figure 1: AWS Global Infrastructure
Table 1: AWS Region and AWS Edge Locations
Table 2: EC2 Availability Zones
Figure 2: Relationship between AWS Regions and Availability Zones.
Figure 3: Architectures for AWS
Table 3: Products and Services by AWS Region
Figure 4: Basic Structure of an AWS EC2 Instance
Figure 5: ELB-based High Availability Deployment Solution
Figure 6: High Availability Deployment Solution across Availability Zones
Table 4: Major Cloud Service Providers in China
Table 5: SWOT Analysis for AWS into China

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