Amazon.com, Inc (AMZN) To Expand AWS, Dismisses Threat from Rivals in Cloud Market

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Amazon.com, Inc. (NASDAQ:AMZN) is set to expand its AWS (Amazon Web Service) unit by gradually establishing data centers in every large country throughout the world, AWS chief Andy Jassy said during Amazon’s third annual AWS conference in Las Vegas on Wednesday.  In a report by Reuters, Jassy is quoted as saying that Amazon is committed to make intense investments in order to grow the business. The planned data centers, once completed, will be Amazon’s largest business unit. The AWS provides corporate clients with Internet-based computing, as well as data management solutions. Jassy further noted in the conference that Amazon’s Founder and CEO Jeff Bezos is seeing the AWS as one of the company’s unit with the largest business potential.

Having pioneered the provision of cloud-based solutions to corporate entities that have  no capacity to invest in the said technology, Jassy indicates that Amazon.com, Inc. (NASDAQ:AMZN) is not worried about its rivals  Google Inc (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT), which has a larger funding for its cloud operations than Amazon.

amazon-logoBloomberg reports that with a 27 percent share in the global market for cloud services, Amazon.com, Inc. (NASDAQ:AMZN) is still the dominant player in the field, followed by Microsoft with 10 percent and International Business Machines Corp. (NYSE:IBM), which has  7 percent shares in the cloud market, as per data released last month by Synergy Research Group Inc. Both Google and Microsoft have restructured their cloud offerings in terms of lower cost and improved services, and cloud users note that there is no much difference regarding the services offered by the two as compared with that of Amazon.

At the backdrop of the company’s announcement of further investments in cloud infrastructure is a sentiment among investors that Amazon.com, Inc. (NASDAQ:AMZN) is into overspending at the cost of margins. Report for the third quarter shows the company posting a loss of 95 cents per share, a steep drop from the earlier loss of 9 cents per share. Missed expectations caused company shares to decline at its lowest during the year after announcement of quarterly loss and revenue, dropping to  about 13 percent.

This article has been written by Nonito Guntan.

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