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Amazon (AMZN) Boosts Asia-Pacific Reach with New Zealand Region

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Amazon’s (AMZN - Free Report) cloud computing arm Amazon Web Services (“AWS”) intends to set up an infrastructure region in Auckland, New Zealand, in a bid to expand its cloud footprint in the Asia Pacific.

The new region will comprise three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio that includes services like analytics, compute, database, Internet of Things (IoT), machine learning, and storage, to customers in New Zealand.

The company strives to deliver a secured data storage experience to the local customers in the AWS Asia Pacific (Auckland) region. The region will help customers in running their applications seamlessly.

We believe that the new region will aid AWS in gaining traction among various customers, including big companies, start-ups, developers, government organizations and non-profit organizations in the country.

The company is expected to open the underlined region in 2024.

Growing Investment in New Zealand

The latest plan is an addition to the company’s growing investment in New Zealand.

Notably, AWS is investing $5.3 billion in the Asia Pacific (Auckland) region, which is anticipated to create 1,000 jobs in the country.

In addition to this, the launch of AWS Outposts, which deliver a hybrid experience by offering the same services, infrastructure and tools as AWS to any data center or on-premises facility, remains noteworthy.

The unveiling of Amazon CloudFront edge locations is counted as another positive effort of AWS in the country.

The company opened AWS offices in Auckland and Wellington in 2021.

We believe that all the efforts will aid AWS in strengthening the presence in the booming cloud market of New Zealand.

Expanding Asia-Pacific Presence

The AWS Asia Pacific (Auckland) region will be an addition to the increasing number of AWS regions in the Asia Pacific. Apart from it, the company recently opened the second region in Japan, which is located in Osaka. The region comprises three availability zones.

Notably, the new Osaka Region and its three availability zones are added to the existing eight AWS regions across the Asia Pacific, located in Beijing, Hong Kong, Mumbai, Ningxia, Seoul, Singapore, Sydney and Tokyo, comprising 25 availability zones altogether.

The company is planning to launch a second AWS region in India in Hyderabad by mid-2022. Notably, the region will also be comprised of three availability zones.

Additionally, the company is planning to set up a second AWS region in Australia’s Melbourne, which is expected to be operative in the second half of 2022. Per plans, the region will comprise three availability zones.

AWS is planning to set up regions in Indonesia, Israel and the U.A.E. as well.

Growing Globally

AWS’s latest move bodes well for its strong focus on fortifying the cloud footprint in international territories.

Apart from the Asia Pacific, the company is gearing up to open a data center in Switzerland by the second half of 2022. Further, it intends to open AWS Regions in Spain and Switzerland.

Currently, AWS operates 81 availability zones across 25 regions.

We believe that the expanding global footprint will continue to aid Amazon in sustaining its solid cloud momentum and dominance over the booming cloud market.

However, increasing competition from strong peers like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google Cloud and IBM’s (IBM - Free Report) cloud division, who are also leaving no stone unturned to bolster their international presence on the back of their rising number of cloud regions and availability zones, poses threat to the leading position of AWS in the cloud market.

Currently, Amazon carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.