AWS is the pioneer in cloud infrastructure services and is the world’s largest in the space, with revenue expected to be $6.2 billion in 2015, out of Amazon’s overall revenue of over $90 billion (most revenues now come from the e-commerce business, but AWS is growing at 40-50% annually).Research firm Synergy estimates that AWS’ revenue from cloud infrastructure services in the first quarter of this year was larger than the combined revenue of its four main competitors -IBM, Microsoft, Google and Salesforce.
Cloud services allow businesses to dispense with purchasing expensive computing infrastructure and software licences -as also obviate the need to operate and maintain them -and instead obtain everything necessary from the service provider by paying a rental fee.
AWS’ announcement comes within months of Microsoft announcing that it would commercialize three data centres in India by the end of this year. From the beginning of July, customers will be able to do private previews of infrastructure services, which it calls Azure. By next year, it will also offer the cloud version of its productivity suite, called Office 365, and cloud CRM (customer relationship management). IBM established a data centre in Mumbai of ering cloud services late last year and a second is expected to be ready later this year.
This big rush to establish data centres in India is partly a reflection of the dramatic shift to cloud computing, the Digital India initiatives of the government, and the need, especially of banking & financial services and government departments, to keep data within the geographic boundaries of India. An India centre will also reduce latency -the time it takes to fetch data.
AWS’ customers in India include enterprises like Tata Motors, Future Group, Macmillan India, and Manipal Global Education.