Amazon.com, Inc. (NASDAQ:AMZN) has made a strategic choice of opening a multitude of new data centers in the Indian region in 2016. Amazon is the third MNC to have joined the likes of International Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT) in launching its cloud computing services in India. However, there is no information about the location where the new data center is going to come up. Considering the pace at which the Indian economy is flourishing, Amazon wants to capitalize on the situation by providing cloud services.
Ostensibly, Amazon feels the time is ripe now at a time when there is a growing demand for Amazon’s cloud-based computing services in the region.
With the availability of Amazon’s data centers, it is expected that the new Amazon Web Services will lessen the load time it takes to get data from the servers. Also, customers will not only be able to manage the workloads but will be in a position to expedite service for their clients.
Amazon has a large clientele base in India with its services are being availed by prominent companies such as PayTm, Hike, Hungama, redBus, Tata Motors Limited (ADR) (NYSE:TTM), Star India, and NDTV.
Commenced in 2006, Amazon Web Services is a group of remote computing services that provide Amazon’s cloud computing platform. These services consist of Amazon S3, an online file storage web service by the group and Amazon Elastic Compute Cloud, a service that leases virtual computers on which clients can execute their applications. Already, many customers in India are relying on AWS through AWS’s eleven global infrastructure regions outside India.
“Requests have been placed on us, for quite some, from a large number of customers, along with scores of prospective new customers to set up cloud computing services in India. Accordingly, we have taken a decision to deploy our services in India”, said AWS’s Senior Vice President, Andy Jassy.
The demand for cloud computing in India is likely to witness increased activity in the coming years. The research firm Gartner predicts that the cloud computing services market will be worth $1.9 billion in the next three years.