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Amazon denied giving up its business in China but has been led by Ali Yunhua cloud

via:21世纪经济报道     time:2017/11/15 10:02:24     readed:39

(Original title: 2 billion for saleserverassetsAmazonDenied giving up China business)

Reporter Tao Li intern Mou Yafei Shanghai reported

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The basic condition of this transaction is that AURORA purchased Amazon based Amazon technology on an installment basiscloud serviceRelated specific operating assets (including but not limited to IT equipment such as servers) and provide and operate cloud services based on Amazon cloud technology in the PRC based on such assets.

But this announcement came out, the Internet will be spread over the "AWS Sell China business" message. In response, an official from Amazon told reporters in the 21st Century Business Herald that AWS did not sell its business in China. "Chinese law does not allow foreign companies to own or operate specific technologies for the provision of cloud services, and in order to comply with Chinese law, AWS offers a full range of services to AOL's new long-term Chinese partners AWS and service providers in AWS China (Beijing) - Sale of specific physical infrastructure assets .AWS continues to own the worldwide intellectual property rights to AWS services. "

In the view of analysts, Amazon's move to make the cloud computing business really landed in the Chinese market, but it still faces fierce competition from Chinese companies.

The cause of cooperation

This reporter learned that the transaction is not aura new network of Amazon China's cloud computing acquisitions, but according to China's regulatory requirements, the purchase of assets such as AWS servers, Amazon continues to retain the AWS cloud services intellectual property rights, and is limited to AWS and halo Beijing co-operation of the Beijing area, does not involve the AWS Ningxia area.

An insider close to Amazon revealed that the cooperation model between Amazon and AURORA remained unchanged. "AWS still owns intellectual property rights in China and provides technical support, which is operated by AURORA, with revenue sharing."

In fact, the reason why Amazon chose to operate AWS in the Beijing area to operate it is because of the policy issues in the domestic regulatory environment. Prior to the announcement of its entry into China in late 2013, despite its cooperation with IDC in China, Amazon was also exposed in 2014 for allegedly hitting the ball in China to circumvent policy restrictions to expand cloud service sales. Informed sources have said that Amazon has always insisted on carrying out market operations, but the original invoice into a new ring Aura.

In May 2016, the Beijing Communications Administration also issued a "rectification notice" to Amazon. The circular pointed out that Amazon did not obtain relevant qualifications and requested Amazon cloud services to suspend business for rectification in China. So after a series of regulatory changes based on regulatory requirements, in August 2016, Aura New Network became the sole operator of Amazon AWS in the Beijing area.

Obviously, the issue of compliance has always been an important factor that troubles the foreign cloud service providers for further development in the Chinese market. The Telecommunication Services Taxonomy (2015 Edition), which came into force on March 1, 2016, stipulates that cloud computing infrastructure is part of the Internet data center and is a nationally regulated area. The promulgation of this provision is also considered to be the direct reason why Amazon has to cooperate with AURI.

After the deal, Aura bought the new network is the front-end operations services; and Amazon will be back behind to provide more bottom-level technical support. Insiders commented that this is AWS's compliance issues in China to find a relatively reasonable solution.

The market is still to be broken

In fact, the Amazon cloud computing business entered the Chinese market as early as 2013, but the development has not seen any improvement. In the local market, it has beenAli Cloud, Huawei cloud and other domestic service providers catch up.

Prior to this, AWS landed in China using the former shop (Beijing) after the plant (Ningxia) model to Beijing as the former shop, Ningxia Zhongwei for the factory, a new network and network and science and technology to provide IDC and ISP, including infrastructure, bandwidth And network functions. In fact, AWS has been unable to resolve the license issue for more than two years until in September 2016, Amazon acquired the legal status in China only in the way it operates.

According to 21st Century Business Herald reporter learned that, as of now, AWS Ningxia data center is still not operating, aura new network also did not take over this "factory." IndustrialSecuritiesAnalysis, the cash acquisition of Amazon AWS domestic assets, undoubtedly strengthened the halo new network as AWS China partner status. Changes in the operation of the main will upgrade the cooperation between the two sides, a new network in the relationship between the two parties will be more proactive, not only provide infrastructure in Beijing and the surrounding area, but also will be involved in cloud service operations, contribute to business profitability .

In addition, there is still a big difference between China and the advanced world in cloud computing. It is expected that the next three years will be the period of rapid development of cloud computing in China.

However, Amazon still faces in China from Alibaba,TencentSuch giants competition. Amazon's third-quarter results for 2017 show revenue of $ 4.57 billion for the company's cloud computing business. Aliyun the latest quarter revenue reached 447 million US dollars. Although the gap between the two huge, but Ali cloud market concentrated in China, and maintained a 100% growth rate.

Senior IT industry observer Ma Jihua in the 21st Century Business Herald reporter interviewed that cloud computing has become the home of the Internet giant's future competition, treatmentMicrosoft, Amazon and other foreign-funded enterprises, the strategy of local companies is a radical price war, effectively seize the market in a short period of time. In this context, AWS still faces a series of constraints in its future development. It is difficult to break through both the policy level and its own operational decisions.

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