Saturday, 18 November, 2017

AWS just sold some of its cloud computing infrastructure in China

Amazon's AWS business is reportedly pulling out of China Amazon surrenders cheapest bit of Chinese cloud
Juana Turner | 15 November, 2017, 00:52

"‎We're excited about the significant business we have in China and its growth potential".

Amazon Web Services (AWS) is selling some of its physical infrastructure in China to a local partner in order to comply with local laws, it has emerged.

Sinnet said in a regulatory filing on Monday that the purchase, which is still pending, would help it "comply with China's laws to further improve the company's AWS cloud services" in terms of quality and security.

Chinese regulators are tightening rules on foreign data and cloud services, implementing new surveillance measures and increasing scrutiny of cross-border data transfers.

Amazon.com, Inc. (NASDAQ:AMZN) is selling some of its cloud business in China to its Chinese partner Beijing Sinnet Technology Co. for approximately 2 billion Yuan (U.S.$301.2 million).

Beijing Sinnet Technology, Amazon's partner in China, told customers months ago to stop using illegal virtual private networks (VPNs), which can offer secure, private networks for users, but also circumvent internet censorship in the country. AWS runs a separate hardware venture in collaboration with the Ningxia provincial government in China's northwest, according to Reuters.

China is in the process of strengthening its censorship apparatus - commonly known as the Great Firewall of China - and companies like Amazon appear to be furthering Beijing's ambitions in order to maintain a place in the local market.

The move casts a shadow over similar foreign ventures in the country. But the USA company has to deal with lawsintroduced this year that mandate the storage of data within the country and bolster government control over the movement of information. Microsoft, Oracle and IBM did not immediately respond to request for comment on Tuesday. Chinese firms account for roughly 80 percent of total cloud services revenue in China, and roughly half of the data centre market in 2017, according to Synergy Research Group.

More recently, telecoms equipment giant Huawei announced plans to take on AWS and Alibaba with its own cloud platform.

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