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Amazon To Launch Cloud Services In India In 12 Months; Impact?

After launching its online comparison shopping engine Junglee, in February 2012, it looks like Amazon is now prepping up to launch its cloud services in India, reports CloudPro. The report quotes Tata Communications CTO John Hayduk who informs that Amazon has begun leasing infrastructure from Tata Communications for this purpose, although he admitted that this might be early days for the company to launch its cloud services in the country and that it is expected to available within the next 12 months since Amazon has leased the infrastructure under a 12-month cycle from Tata Communications.

In a development which seems related to this matter, Amazon had sent emails to all its AWS customers earlier this month, wherein it had sent a short user survey to better understand its customers’ needs in India as well as offer better services and support. The survey consisted of questions to understand how well the locations of the existing AWS datacenters met the customer needs, how the geographic location of these datacenters affected their business, where the majority of their customers were located among others, indicating Amazon’s interest in offering its cloud services in the country. It is also worth noting that Amazon has had software development centres in Bangalore and Hyderabad for quite some time now.

Impact:  Opening up of an Indian datacenter would allow companies to get better latency and could possibly pave the way for the availability of AWS Direct Connect feature, which establishes a dedicated private network connection from the company’s premise to the datacenter, thereby reducing network costs, increasing bandwidth throughput, and providing a better consistent network experience than the existing Internet-based connections. Another advantage, could possibly be the introduction of payment options like Netbanking among others, which could be beneficial for Indian companies and startups using Amazon’s cloud services, which might not have credit cards at all employee levels. At the moment international cloud services only offer credit cards as a payment mode due to regulations.

Other Datacenters: Amazon currently has three datacenters in the United States and one each in Dublin, Singapore, Tokyo and Sao Paolo, Brazil.

Amazon in India: In November 2011, we had reported about Amazon’s plans to launch a marketplace in the country and tying up with various e-commerce ventures to feature their products on the Amazon India website. Later, it was also revealed that the company was hiring around 3300 people in Hyderabad, and planning to invest around Rs 500 crore (around $100 million at current rates) over the next three years. This marketplace went live as Junglee.com on February 2012 with Amazon positioning it as an advertising service for product ads, pitting retailer against retailer for similar products while seeding its own products in these listings.

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Last month, Amazon had also received FIPB nod for setting up a wholly owned subsidiary (WoS) in the country to undertake the business of online market place operator and retailer inter-alia courier services and allow the retail giant to bring in foreign investment up to Rs 15 crore in order to set up its own courier service.

* This post has been revised with minor changes

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