AWS Banks On Indian SMBs For Growth

by CXOtoday News Desk    Dec 13, 2016

Amazon Web Services

India has been warming up to the concept of cloud computing, atleast at the enterprise levels, and it’s beginning to show even in the lot of SMBs and start-ups in the country. From Practo, which has found new ways to scale 60x and reduce product deployment time from months to weeks, to Nearbuy which has shifted it’s production workload to a niche Amazon based service called EC2 container service, to Craftsvilla, which has found new cost-optimization methods based, Amazon Web Services has long found it’s customer base in India, from the new age enterprises.

Now, it is banking on the SMB sector to power future channels of growth, as CEO of Amazon Web Services Andy Jassy said, “India is a very important market for us. Indian start-ups and enterprises have been using AWS for many years. We are very optimistic on our cloud business in India and we will significantly expand our operations in the coming years.”

Amazon Web Services (AWS) is now 10-years old, currently growing at a rate of 55% year-on-year, and has $13 billion in annual sales. It also provides 70 varied services to various enterprises in areas like computing, storage, database management, data analytics, mobile solutions, IoT, and enterprise applications.

Clients abroad include bigger names like Adobe, Capital One, GE Siemens, Novartis, Netflix, and Pinterest, apart from new age startups like Airbnb, Spotify, and Shazam, who use AWS infrastructure at the back end. Even though the company faces competition from Google and Microsoft, it is ahead of this competition by a sizable margin, as Jassy explained,“Gartner estimates that our business is several times the size of the next largest 14 cloud businesses combined,” before adding his assessment of what the cloud market will be like, from the service providers’point of view, saying

“That said, there’s trillions of dollars in our market, and there won’t be one company that captures it all. There will be several successful players, not 30, a smaller handful. But we are optimistic we’ll continue to be a strong leader. AWS is used by more than 1 million people from organizations of every size across nearly every industry.”     

The Indian focus

AWS already has a large customer base with Indian SMBs, apart from providing services to developers, larger enterprises, and even educational institutions. As made clear from Jassy’s points at the 5th edition of AWS re:Invent, “India is a very important market for AWS. Indian start-ups and enterprises have been using AWS for many years with most Indian tech start-ups building their entire businesses on AWS, and numerous enterprises running mission-critical, core applications on AWS.” In other words, it is testimony to the fact that Indian businesses are indeed adaptive to the cloud revolution.

In terms of AWS plans in the country, Forrester Research Analyst, Naveen Chhabra assessed the plans of the company, saying “AWS is seeking a position of strength and to be a one-stop shop for firms that can tie multiple cloud services and develop innovative new-age digital services for their businesses. Innovation is the key to any firm’s growth and AWS is all out to support that. However, clients’ education about these services is of utmost importance and AWS India has scaled up its team to address this.” 

Infrastructure has also been a crucial part of the AWS growth story. AWS has spread 35 availability zones and 13 infrastructure zones at the global, out of which 2 availability zones are based in Mumbai. As per media reports, “..availability zones are data-centers in separate, distinct locations within a single region that are engineered to be operationally independent of other Availability Zones, with independent power, cooling, and physical security connected via a low latency network”. For Indian and Asia-Pacific customers, this will essentially allow them to create applications to be run on cloud. As Stephen Orban, the global head of enterprise strategy at AWS, explained, “AWS customers focused on high availability can architect their applications to run in multiple Availability Zones to achieve even higher fault-tolerance.There had been a strong demand from some 75,000 Indian customers, along with others, for an AWS India Region so they can move their applications that require low latency and data sovereignty.”