AWS continues to assess investments in Taiwan

Robert Wang, Managing Director of AWS in Hong Kong and Taiwan. Credit: DIGITIMES Asia

Amazon Web Services (AWS) continues to assess its investments in Taiwan, though it remains unclear whether a data center is going to be set up in Taiwan or not, according to Robert Wang, the managing director of AWS in Hong Kong and Taiwan.

AWS continues to expand its ecosystem in Taiwan: its investment includes the Local Zone launch plans announced in June. The company will continue to assess market demand to increase investments. Regarding clients with highly monitored data such as the medical and financial industry, AWS can deliver the 42U Outpost rack to the client’s server room and provide assistance with cloud migration, reducing data breakpoints and security risks.

When asked about the key assessment metrics for investing in Taiwan, Wang stated that the most important metrics are market demand and the client’s voice. The return on investment (ROI) is also part of the consideration. ROI assessments have short, medium, and long-term stages, and hopefully the Taiwanese market can generate a reasonable ROI.

DIGITIMES had an exclusive report in June stating AWS’s first data center in Taiwan is rumored to begin operation in 2024. The main site will be located north of Miaoli. However, the report was not confirmed by official sources.

When asked about this again, Wang said that AWS had already built a lot of Availability Zone (AZ) data center groups around the world. The AWS Taiwan team and clients are also looking forward to this. However, many clients do their business on a global scale. For them, whether or not Taiwan has an AWS center isn’t actually that important. The demand also needs to be viewed separately for each industry. Besides the standard AZ, AWS can also expand its services on the front end through Local Zones and Outpost racks. This can satisfy different clients regarding the demand for low latency data transmission and related regulations.

“If we can build server rooms in Taiwan to offload the servers for corporations and the government, that’s what would help Taiwan to solve its issues,” said Wang. He reiterated that AWS continued to assess its investments in Taiwan. AWS charges according to demand and is trying its best to avoid idle computing resources.

Regarding which industries in Taiwan face difficulties to migrate to the cloud, Wang points to the financial sector. Authorities are stricter when it comes to personal financial information. However, de-identification technology allows personal information to meet the regulations when utilized by new technology.

The Financial Supervisory Commission (FSC) has already amended the “Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation” in 2019. Many clients in the financial sector have gradually adopted cloud solutions as well. AWS certainly hopes for a more active loosening of the regulations. It will also continue to work with FinTechSpace to provide a cloud technology platform to assist startups.