Friday, 24 November, 2017

AWS sells China hardware to local cloud partner

Is all that other stuff you are doing really important?. If it's not frankly stop doing it. Image ALotOfPeople Getty Images  iStock Is all that other stuff you are doing really important?. If it's not frankly stop doing it. Image ALotOfPeople Getty Images iStock
Heather Davidson | 15 November, 2017, 01:23

Tech titan Amazon is set to sell part of its cloud computing business in China to partner Beijing Sinnet Technology for over $300m.

Commenting on its decision to sell the entire business, Amazon said, "No, AWS did not sell its business in China and remains fully committed to ensuring Chinese customers continue to receive AWS's industry leading cloud services".

Amazon said via a post on its website that its China public cloud services were managed exclusively by Sinnet. Due to compliance issues, Amazon began operating AWS services in 2016 through its partner Sinnet. Apple, the American company behind the iPhone juggernaut, has said it will establish a data center in China, for instance.

In a TechCrunch article it was explained that Chinese law does not allow certain technologies to be owned by non-Chinese companies, so a transaction was required to continue the partnership between the companies in China.

This year in August, Sinnet told customers that it would shut down the VPNs and other services on its networks that helped users to get over China's Great Firewall.

With Alibaba's cloud services expanding rapidly, it looks as if China is resolved to sit on its own cloud.

Whereas the European Union sees foreign cloud services as a source of revenue - fining them billions whenever they can think up some legal infraction they may have committed - China is obliging foreign cloud service providers to sell their assets to China-based companies which come under state control. Some U.S. -based trade groups say that China has repeatedly lent deaf ears to the requests by U.S. firms on giving access to Chinese markets just like the Chinese firms get in the U.S. However, the Trump administration has hardly done anything to address the issue.

China favors domestic firms over foreign ones with paternalistic policies.

They would go under the strict regulatory scrutiny from the Chinese government.

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