Amazon Web Services plans to build a Local Zone in Vietnam


Amazon plans to supplement its massive network of data centers in the Asia-Pacific region by building Local Zone.

Amazon Web Services (AWS) offers customers a wide range of digital solutions, such as data storage and processing. Like its major competitors – Microsoft and Google or Alibaba Group Holding and Tencent – AWS is racing to build massive, multibillion-dollar data centers in Asia.

In an interview with Nikkei, Phil Davis, AWS’s regional director for Asia-Pacific and Japan, said his company has recognized a new opportunity: “To meet the demand for low-latency and bring cloud technologies closer to more customers, we are deepening our infrastructure investments in Asia Pacific and Japan with plans to launch 10 new AWS Local Zones in six countries over the next two years.”

Amazon has announced it will build 10 Local Zones in 6 countries: Australia, India, New Zealand, Philippines, Thailand, and Vietnam.

AWS Local Zones are a type of infrastructure deployment that places AWS compute, storage, database, and other services closer to customers – enabling them to build and deploy applications that require single-digit millisecond latency closer to end users or on-premises data centers.

AWS Local Zones and AWS Regions are different but complementary types of infrastructure deployment, giving customer the flexibility to choose how to deploy their workload based on their needs.

AWS Local Zones are connected to the parent region via Amazon’s private network, giving applications running in AWS Local Zones fast, secure, and seamless access to the rest of AWS services.

Most workloads are best suited for running in AWS Regions, where they can benefit from the scale, breadth of available services, elasticity, and generally lower prices. However, for the parts of an application that require low-latency access and there is a Local Zone, customers should consider using AWS Local Zones, which enable them to deploy the latency-sensitive portions of their workload in proximity to their end-users.

AWS also released an economic impact study (EIS) estimating that the company’s spending on the construction and operation of the new AWS Asia Pacific (Jakarta) Region will create 24,700 direct and indirect jobs with an estimated $5 billion (IDR$71 trillion) in planned investment in the local economy. The Region will also add an estimated $10.9 billion (IDR$155 trillion) over the next 15 years to Indonesia’s Gross Domestic Product (GDP).

Mr. Davis said AWS will continue to build more AWS Regions and the company has announced it will add further infrastructure investments in Auckland and the Indian city of Hyderabad.

By building more regional data centers, Davis said, AWS will be able to strengthen its position in the Asia-Pacific region.

Local Zones will allow AWS customers to run services that require very low latency access such as real-time gaming and live video streaming, as well as new apps — including autonomous driving and virtual reality — throughout the region.

Customers will be able to “build and deploy apps that require just a few milliseconds of latency,” Davis said. Local Zones can help users comply with data sovereignty regulations and requirements in their respective countries, though they were designed primarily to focus on enabling low-latency use cases. Currently, Vietnam is also planning to introduce open rules governing the use and transmission of data.

Since Amazon pioneered cloud computing 16 years ago, AWS has grown and brought in huge profits for Amazon.

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