Amazon.com Inc claimed this week that it was extending its business for cloud computing in China with a fresh local associate, planning to get a share in a highly regulated and progressively crowded market. AWS (Amazon Web Services) will begin providing customer services situated out of the northwestern region of China in Ningxia in association with local company NWCD (Ningxia Western Cloud Data Technology Co Ltd), claimed the U.S. company.
“AWS has made tactical technology alliance with NWCD. In return, NWCD works and offers facilities from the AWS China Ningxia Region, in full fulfillment with regulations of China,” Amazon claimed to the media in a statement. The decision follows a month after AWS claimed that it will trade the hardware possessions of its Beijing-licensed cloud unit for almost 2 Billion Yuan (almost $302.06 Million) to its associate Beijing Sinnet Technology Co Ltd to obey with new rules.
In June, China rolled out strict new rules that need foreign companies to amass data domestically and outsource hardware components to local associates. Cloud services have turned out to be a competitive and crowded field in recent years in China, with domestic firms, comprising Alibaba Group Holding Ltd, starting dozens of fresh data hubs in just the last year. As per Synergy Research Group, Chinese companies comprise almost 80% of complete cloud services income in China.
The U.S. firms such as Apple Inc., Amazon, and Microsoft Corp. must jump over challenges to vie, encountering new surveillance actions by the government of China and rising scrutiny of cross-border transfers of data. The infrastructure for the latest data hubs in Ningxia was constructed by affiliates of NWCD employing specifications offered by AWS, a spokesperson of Amazon claimed to the media in an interview. The AWS facilities provided in China are analogous to services provided in the rest of the world.