Cloud computing major Amazon Web Services (AWS) is betting big on the India market with $12.7-billion investment in the next seven years.

Puneet Chandok, President of Commercial Business, AWS India and South Asia, said the company will be launching two new local zones by the end of the year and will build global support organisations and tech teams in India.

“India, today is one of the largest open markets for technology companies to build. We are seeing momentum across the board. India, unlike many other countries, is seeing secular growth across verticals as all industries are being reimagined by cloud and technology,“ Chandok told businessline.

AWS has seen adoption across industry verticals such as financial services, manufacturing, and media among others. It is also seeing momentum in new age sectors like game-tech, food-tech and fintech. Chandok said that India is a high growth market and the company sees huge headroom for growth as the penetration of Cloud services in India is only in high single digits and 90 per cent of workloads are still on-prem.

He further said that the launch of local zones is aimed at serving the evolving needs of the customer base.

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“Several industry use cases require extremely low latency and that’s the reason we plan to take a lot of processing power closer to our customers in local zones,” Chandok noted.

On the impact of global slowdown on growth momentum, Chandok said the customers are not looking at cost cutting, but at cost optimisation and the AWS has teams focused on reducing costs and driving value. Customers are also focused on high ROI (return on investment) projects in the near-term.

“Customers need technology and Cloud both at times of incredible growth and uncertainty. Lot of businesses are telling us that this is the time to invest in building as it’s far more sensible to build now, unlike two years ago, where there was crazy growth happening,” he said.

Job cuts

The second round of layoffs by Amazon on a global level had impacted its teams in India as well.

Chandok said that the company went through a re-prioritisation exercise.

“We looked at how do we re-prioritize resources in areas that matter even more for the customers at a time like this. In some cases, where we had a skill mismatch, we had to restructure some teams,” he said.