Not Amazon.com… but its web services division (AWS). 

Amazon, one of the world’s leading internet companies, announced today the start of its operations in Brazil with its corporate online services. 

According to Folha, the company’s first initiative in the country will be through its Amazon Web Services (AWS) division, dedicated to the cloud computing model, in which corporate clients pay monthly for the use of the company’s servers.

“The reason is mainly economic. The potential for technology expenditures in the country are huge,” said Vice President Andy Jassy.

Today the company has among its clients the collective buying site Peixe Urbano and the airline Gol, which use the company’s servers in the USA.

Local Competition: AWS x UOL Cloud x Locaweb
 

Among its local competitors is UOL Cloud. Launched in July of this year, the local service has 3000 enterprise servers.

“The company will still take time to get to know the market and has the challenge of providing service and support in Portuguese, which is fundamental to selling services of this kind,” says Vinícius Pessin, director of UOL.

Another competitor is Locaweb, which has had cloud computing services since 2005, and has 5000 customers.

According to Gilberto Mautner, president of the company, the prices of their offerings are more competitive because they already include support, while the “self service” model of Amazon requires a separate payment. 

Background
 

Created in 2006, Amazon Web Services was born with the purpose of renting the idle capacity of Amazon.com’s global servers. Netflix and Shell are among its customers.

The AWS division should end the year with revenue of $750 million, still a small fraction of the US$34 billion in sales of Amazon.com.

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