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AWS business quit China? In fact, this is the reason why Amazon sold 2 billion of its assets

via:雷锋网     time:2017/11/14 21:55:29     readed:557

The reason given is the aura of the new network:In order to comply with China's laws and regulations, to further enhance the company's operating AWSCloud serviceSecurity and service quality.Amazon AWS also made an official response to the rumor that "AWS sells Chinese business":

AWS does not sell Chinese business. We are committed to ensuring that Chinese customers continue to receive AWS's industry-leading cloud services. Chinese law does not allow foreign companies to own or operate specific technologies and provide cloud services. Therefore, in order to comply with the law Chinese, AWS to the new halo net - AWS Chinese long-term partner and AWS Chinese (Beijing) regional service operators - the sale of specific physical infrastructure assets. AWS continues to have intellectual property rights in the global AWS service. We are very excited about having this important business in China and its prospects for growth in the coming years.

Amazon and halo new web

Compared with the famous Amazon, awareness of the aura of the new network is not too high. In fact, the aura of the new network was established in 1999, the main business is to provide broadband access, IDC (Internet Data Center) and other value-added services; it also has long cooperation with amazon.

In December 18, 2013, Amazon AWS officially entered into Chinese market, and began a limited preview at the beginning of 2014; due to regulatory requirements, AWS through the "front shop" landing in Beijing, the front of the shop, Ningxia defender for factory, respectively, and the aura of the new network and ChinaNetCenter science and technology cooperation; and the new halo net ChinaNetCenter IDC and ISP, including infrastructure, bandwidth and network function.

However, by August 2016, the new halo net has announced that a new operating agreement with Amazon, in the Beijing area (Beijing and surrounding areas) for cloud services infrastructure and cloud service platform operation, and provide AWS cloud services to customers China; and the aura of the new network according to the agreement to pay as Amazon. Amazon provides service and support and authorization of the price.

In other words, initially had reached an agreement with Amazon's ChinaNetCenter, has been completely out; and the aura of the new network become the only operator of Amazon AWS in Beijing area.

It is worth mentioning that the reason why Amazon chose to operate the AWS in Beijing region is due to the policy issues under the domestic regulatory environment. Before and at the end of 2013 announced in China, although there are domestic IDC companies, but also the Amazon in 2014 are exposed alleged policy edge ball hit in China, to circumvent the policy restrictions to the expanding cloud service sales. Informed sources said that Amazon has been insisting on market management activities, but the original customer invoices into a new ring of the net.

Even in May 2016, the Beijing communications administration has also issued a "rectification notice" on Amazon, the notice pointed out that Amazon has not obtained the relevant qualification requirements, Amazon's cloud services in China to suspend business for rectification. So, after a regulatory reform based on the requirements, August 2016,The aura of the new network become the only operator in the Amazon AWS in Beijing area.

However, cloud data is still a problem

The conclusion of the cooperation agreement seems to mean that Amazon AWS really gets the pass to china. After all, the network information security based on the consideration of the provisions of the state value-added telecommunications business telecommunications enterprises with foreign investment of foreign shares accounted for not more than 50%, but also must have a license; and the current IDC license owner, is the domestic Internet service enterprises; and the new halo net is one of these enterprises.

In other words, the collaboration with aura's new web seems to be a drag on Amazon's AWS.

However, according to informed sources, although the partnership between the light and the new network, Beijing Sinnet but holds IDC licenses only provide room, not directly involved in the actual operation, the user using the Amazon Chinese service fee, 90% paid to the Amazon, the remaining 10% machine as rent paid sinnet.

In other words, all the data to provide cloud services, Amazon will remain in such foreign hands; this situation is based on security considerations and national regulations the contrary, there are some legal risk. But for the Amazon AWS, capable of landing is elusive.

For halo new web, the cooperation with Amazon brings about risks and benefits. According to GuoxinNegotiable securitiesIn research published in July 20, 2017, the fourth quarter of 2016, AWS Chinese District revenue growth reached 10%, the monthly revenue of nearly 100 million yuan; and the aura of the new network to obtain the income from the two main part of the infrastructure and value-added services.

But the problem is that even if the growth rate of 10% QoQ, Amazon AWS has not been able to achieve profitability in the country.Its cooperation with the new network light is more based on the rules of the market, the new light network for AWS provide basic resources and infrastructure configuration, Amazon pay new light, so the latter has a certain profit space. According to Guoxin Securities previously expected, ray new network in 2017 to obtain 1 billion 200 million yuan of income from AWS, net profit of five to sixty million yuan.

The real obstacle of AWS development in China

In November 1, 2017, the famous research institutions IDC released the 2017 China public cloud IaaS the first half of the market share survey report shows that China public cloud IaaS market are the top fiveAli cloud,tencentCloud, Jin Shanyun, China Telecom and Ucloud, AWS and Amazon but fail in an examination. Let me put it another way,Amazon's IaaS AWS revenue in the first half of China and even failed to reach $57 million 740 thousand Ucloud, the share is also lower than the latter 5.5%.

PaaS is also the case, Amazon AWS in the Chinese area share of less than fifth IBM fail in an examination, 4.6%.

By contrast, Amazon AWS in a quarter of the global market revenue is $about 4000000000; and it accounted for 40% of the global market share is Google,MicrosoftTwo times that of three IBM companies. Such a sharp contrast behind, in fact, Amazon AWS in the Chinese market helpless and embarrassing.

Although the Amazon AWS in Chinese market demand increased rapidly, a single month once reached 10%, but by the policy restrictions, the Amazon in 2017 basically no expansion of new users, only some of the technical aspects of the promotion. And the Amazon has also repeatedly communicated with the Ministry of information on issues such as overseas isolation.

Another problem is that in order to promote the AWS of Chinese coverage, Amazon had to invest in Ningxia three data center, located in the Central Industrial Park, Riverside bridge and temple and bead three places, and the construction has been completed in 2016. However, due to the relevant regulatory policy has not yet landed, Ningxia data center has not yet operated.The aura of the new network in order to fight for the right to operate IDC AWS in Ningxia, also set up a subsidiary in Ningxia.

There is news that Amazon has made the new halo net as Ningxia defender data center operating partner, which makes the relevant government departments in Ningxia are unhappy. This is originally opened in March 2017 in Ningxia central data center and Chinese AWS business still no sign of the reason.

In addition, in June 1, 2017, the formal implementation of "network security law", the law of strict supervision for the network infrastructure, network information and network operation enterprises, foreign enterprises in China directly operating data center and network news service on the principle of prohibiting. For Amazon AWS, it may be an insurmountable obstacle to its independent development in the Chinese market.

The trusted cloud conference in July 2017, cloud services as a new service model into a new version of the "telecommunications business directory", so the IDC originally held the license of the enterprise, if in fact has been engaged in a cloud service or CDN service, the Ministry requirements in written form of commitment commitment before the end of the year to business license of the corresponding requirements, and obtain the corresponding business license. If it fails to make a commitment on time, it may not operate the corresponding business from April 1, 2017. If it has committed, according to the deadline of commitment, before the end of the year does not have the certificate of the enterprise, since January 1, 2018, shall not operate the corresponding business.

In other words, if you want to run AWS business, halo new network also need to get cloud service license before January 1, 2018.

In fact, halo new network has submitted materials to the Ministry of industry before September 2017, and is now in the approval process of the Ministry of industry. Now, Amazon will sell the new halo net based on the specific operating assets at a price of 2 billion yuan AWS cloud services, but also can be said to be in order to get regulatory approval and once again make a compromise; but in the long run, to gain a foothold in the Chinese, this may be the Amazon AWS had to make a choice.

After all, 2 billion yuan is a small figure for Amazon, but it is basically worth the year's revenue of AWS in china.


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