Amazon Focuses On LATAM: Should Google & Microsoft Worry?
Zacks Investment Research | May 21, 2018 09:34PM ET
Amazon (NASDAQ:AMZN) intends to expand its Amazon Web Services’ (“AWS”) in Latin America (“LATAM”) by setting up new data centers, per Reuters.
This initiative is in the same vein as Amazon’s expansion drive in cloud computing business via new and advanced data centers in Argentina and Chile. The company opened a new AWS office in Buenos Aires, Argentina, which will aid in promoting the utilization and innovation of cloud-based technologies.
The company’s strong initiatives to expand operations globally have been strengthening its cloud computing business. Moreover, AWS, which manages data computing in cloud for its enterprise clients, is expected to achieve more efficiency and accuracy in data management with the increasing number of data centers worldwide.
These factors are likely to provide Amazon a competitive edge in the cloud computing market, where it is facing stiff competition from the likes of Microsoft (NASDAQ:MSFT) Azure, Alphabet’s (NASDAQ:GOOGL) Google cloud and Alibaba (NYSE:BABA) .
Per Synergy Research, AWS maintained dominance in the cloud infrastructure services market in first-quarter 2018. Microsoft, Google and Alibaba gained share from small-to-medium sized cloud operators.
The robust performance of high-margin AWS has aided Amazon in delivering strong results in the recently concluded quarter. Shares have returned 35.6% on a year-to-date basis, outperforming the Zacks Investment Research
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