(Bloomberg) — Amazon.com Inc. agreed to sell some of its Chinese cloud assets to its local partner but said it’s committed to a domestic market for internet-based computing that could be worth $30 billion.
Beijing Sinnet Technology Co. will buy servers and other unspecified “operational assets” in the country’s capital from Amazon Web Services for as much as 2 billion yuan ($302 million), it said in a filing to the Shenzhen stock exchange. The sale is intended to comply with government regulations and improve service, it said.
Amazon’s business in China has been hollowed out by the rise of local rival Alibaba Group Holding Ltd., which has come to dominate e-commerce and is expanding in cloud computing with new data centers. Amazon, the global leader in internet computing, is vying for a slice of domestic spending on cloud services and gear that IDC estimates will reach $30 billion by 2021. But the U.S. company has to deal with laws introduced this year that mandate the storage of data within the country and bolster government control over the movement of information.
On Tuesday, the e-commerce giant rejected media reports tying its asset sale to an imminent departure from the Chinese market. It said instead it was selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology.
“AWS did not sell its business in China and remains fully committed,” the company said in an emailed statement. “We’re


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Construction of the new high-capacity transatlantic cable landing on the shores of US and Spain funded by Facebook, Microsoft, and Telxius, subsidiary of the Spanish telecommunications giant Telefónica, has been completed, the companies announced Friday morning.
It is the highest-capacity cable to have ever crossed the Atlantic, according to Microsoft, and represents a recent shift in the balance of power in the submarine-cable industry. Traditionally, transcontinental cables have been funded by telco consortia, who would then sell capacity on those systems to customers like Facebook and Microsoft. Lately, however, skyrocketing demand for global bandwidth has driven the largest of those customers – among them Alphabet’s Google and Amazon Web Services – to participate in funding the construction projects, which cost hundreds of millions of dollars, themselves.
Related: Will the Submarine Cable Boom Drive More Revenue to Colos?
The cable, called Marea (the Spanish word for “tide”), is more than 4,000 miles long and can transmit up to 160 terabits per second, which is about 16 million times faster than the average home internet connection and enough to stream 71 million high-definition videos at the same time, Suresh Kumar, corporate VP of Microsoft cloud infrastructure and operations, wrote in a blog post.
International network bandwidth and traffic have been growing quickly, although the growth rate has been declining in


(Bloomberg) — VMware Inc. stock has gained almost 50 percent since last October, riding a wave of optimism about a partnership with Amazon.com Inc. that was meant to save the software maker from oblivion as customers shifted more of their systems to the cloud.
The accord was announced with fanfare last year as a way for VMware to keep close ties to clients even as they move to internet-based computing – a business Amazon dominates, and one where VMware lagged. It was seen as a win for all parties. Customers that rely on VMware’s software for making servers more efficient could move some of their applications – for whatever the task, be it billing, payroll or email – over to Amazon’s cloud service without having to completely rewrite them. The resulting product, VMware Cloud on AWS, was released on Monday, with VMware Chief Executive Officer Pat Gelsinger and Amazon Web Services CEO Andy Jassy touting the release at VMware’s big annual conference in Las Vegas.
See also: You Can Now Spin Up VMware Servers in Amazon Data Centers
Here’s the problem: there’s nothing keeping Amazon from developing its own competing set of products down the road. Should that happen, VMware would be poised to lose customers – including some that it helped introduce to Amazon Web Services through this partnership.
“We’ll have to see how this relationship evolves over the next three to five years, but that is the thing that VMware will have to navigate very


Rackspace is offering to streamline the Amazon Web Services (AWS) adoption experience for customers with an enhanced strategic channel partnership announced Monday. With the partnership, Rackspace seeks to address the common lack of internal resources and expertise needed to quickly and effectively move workloads.
The new strategic relationship has three key components, according to the announcement. Rackspace will offer Solution and Migration Advisory Services, including AWS-specific technical resources to help plan migration, along with assessment of workloads, from server types and configurations to systems architecture design, to ensure the best fit.
New Cloud Technology Partners Solution to Kickstart AWS Adoption
Migration Service Delivery allows customers to tap Rackspace support and engineers with access to AWS professional services to efficiently migrate or provision new applications on AWS.
Rackspace Advanced Migration Tooling uses automation to allow customers to move various workloads to AWS via a point-and-click self-service interface within the Rackspace Control Panel.
“We have worked closely with Rackspace over the last several years and have been very impressed by their dedication to invest in the capabilities required to become one of the next-generation leaders in the AWS Managed Service Provider (MSP) Partner Program,” said Terry Wise, global vice president of channels and alliances, Amazon Web Services, Inc. “Rackspace is a solid example of an AWS


(Bloomberg) — Amazon.com Inc. reminded investors that luring shoppers away from stores and dominating the cloud-computing industry isn’t cheap.
The company on Thursday forecast a potential quarterly loss for the first time in two years. Amazon said it’s boosting spending on new warehouses to meet growing e-commerce demand, data centers for its Amazon Web Services division, video programming to keep customers engaged and gadgets like the Echo line of voice-activated speakers to stay on the cutting edge of the emerging smart-home market.
The outlook underscored the high cost of Amazon’s business model, which consistently delivers big sales gains and plows a chunk of that money back into the company by hiring workers, expanding its footprint and launching new products.
Chief Financial Officer Brian Olsavsky said Amazon’s expenses would climb in the second half of the year as it hires workers and works out the kinks in new warehouses to prepare for the peak shopping season. That’s why Amazon projected operating income in the current period ranging from a loss of $400 million to a gain of $300 million. The last projected quarterly loss came in July 2015 for similar reasons.
The third quarter “is generally a high investment period for the holiday,” he said.
Analysts estimated operating profit of $863.5 million, and shares fell as much as 4.3 percent to $1,001.80 in extended trading Thursday after the forecast and earnings were reported. Friday morning the stock


Despite the growth in cloud hosting for production environments, nearly half of developers (44 percent) use a private, in-house cloud platform for development, ahead of Amazon Web Services (16 percent) and Microsoft Azure (13 percent).

The post Developer Survey Shows Public Clouds are Seldom Used for Development appeared first on Web Hosting Talk.


Rackspace is building a managed services product for Amazon Web Services, its rival in the public cloud market where Rackspace has struggled to grow.

The post Rackspace to Provide Managed AWS Services Before Year’s End appeared first on Web Hosting Talk.


London-based cloud hosting provider ElasticHosts has launched a container-based cloud infrastructure service, Springs.io, which features elastic capacity scaling and pay-per-use billing at lower prices than equivalent virtualization-based cloud services like Amazon Web Services.

The post Cloud Provider ElasticHosts Launches Container Hosting Service Springs.io appeared first on Web Hosting Talk.


Gartner has released its annual Infrastructure-as-a-Service Magic Quadrant, reporting that Amazon Web Services has once again built on its seemingly insurmountable lead last year, while many vendors trended down and to the left. In Gartner MQ parlance, no quadrant is bad, however.

The post Gartner: AWS Pulls Further Ahead of Others in IaaS Cloud Market appeared first on Web Hosting Talk.


HP is no longer aiming to compete head-to-head with the likes of Amazon Web Services in the market for renting or buying computing, according to HP Helion product management SVP Bill Hilf as quoted in a New York Times blog post this week.

The post HP Says It Won’t Compete ‘Head-to-Head’ with Public Cloud Services appeared first on Web Hosting Talk.

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