On Wednesday, Amazon Web Services, Inc., (AWS) a subsidiary of Amazon.com, Inc., officially announced the AWS Asia Pacific (Thailand). Many sectors including developers, startups, business owners and organizations, or even government agencies, academic, and non-profit organizations would be able to access AWS applications and its customer services which are based in Thailand. AWS has assured a long-term investment in Thailand, with plans to invest more than $5,000 million (THB 170,000 million) into the country.
AWS stated that the establishment and operation of the new AWS Region in Thailand will greatly benefit the economy. This would increase the kingdom’s GDP to around $10 billion and create more than 11,000 full-time jobs annually in related business. The new jobs would have covered various professions including construction, building attendant, engineering, telecommunication, etc., which would play a key role in driving Thailand’s economy. These are just a part of the AWS operation in Thailand.
Krungsri Securities wrote in an analysis on Thursday that AWS cloud services in the Thailand region also have its equivalence in Singapore. Usually AWS Region would consist of at least three Availability Zone (AZ) which come from one or more data centers. The most interesting points from the announcement were:
- Services fees in Thailand are around 10-15 % cheaper than in Singapore, making it likely that Thai companies would switch to Thai AWS. The companies that would benefit from this are dealerships like SIS Distribution (Thailand) PCL (SET: SIS), while the companies that are negatively affected by this are Internet Thailand PCL (SET: INET) due to increased competition.
- The announcement would bolster Thailand’s digital transformation. The companies that would benefit from this are Advanced Info Service PCL (SET: ADVANC) and True Corporation PCL (SET: TRUE) from increased data usage, companies that deal with telecommunication and digital tech such as Bluebik Group PCL (mai: BBIK) would also receive the benefit.
- If digital adoption were to accelerate like in other countries, there would likely be a stream of investment in Thailand’s data center in the next phases. The companies that would benefit from this are companies in infra tech such as WHA Corporation PCL (SET: WHA), Gulf Energy Development PCL (SET: GULF), and Infraset PCL (SET: INSET)
