Amazon Web Services Signs MOU With ISRO, IN-SPACe to Support Space Tech With Cloud Services

Amazon Web Services (AWS) has signed a memorandum of understanding with ISRO and IN-SPACe to support space-tech innovations through cloud computing.

The collaboration with ISRO and the Indian National Space Promotion and Authorization Centre (IN-SPACe) is aimed at giving space startups, research institutes and students access to cloud technologies through AWS Activate for new solutions in the space sector, AWS said in a statement on Wednesday.

The collaboration follows the approval of the Indian Space Policy, 2023 in April by the government which provides a strategic roadmap for the growth and development of India’s space programme using cloud computing, data, Artificial Intelligence and Machine Learning.

AWS India and South Asia Director and Chief Technologist, Public Sector, Shalini Kapoor said the company is committed to helping startups identify use cases accelerate solution development, and build a strong talent pool in India with expertise in cloud and space.

“Cloud computing-led innovations enable the space industry to make better decisions, faster – pushing the boundaries of possibilities. We look forward to helping customers in India build space-tech solutions to make life on Earth better,” Kapoor added.

ISRO Director for Capacity Building and Public Outreach Sudheer Kumar N said cloud computing enables the speedy management of large volumes of raw space data, besides running AI, ML and analytics workloads to achieve meaningful outcomes in a highly cost-effective manner.

Startups will also benefit from access to AWS and its global experience of building aerospace and satellite solutions through the AWS Space Accelerator programme.

“After Chandrayaan-3 moon landing and Aditya L-1 mission, it is time we leverage the limitless potential of space technology and cloud computing to propel India’s space sector to new heights. This partnership with AWS is a testament to that and through this, we aim to empower startups, students, and researchers to dream beyond the skies, drive innovation, and contribute to the global space industry,” said IN-SPACe Director, Promotion Directorate, Vinod Kumar.

The three organisations will also collaborate on a new initiative to train students and educators in cloud computing, AI, ML, analytics, and security, by leveraging AWS education programmes. 


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Google Filed Complaint Against Microsoft for Dominant Cloud Services Position: Report

Alphabet‘s Google formally filed a complaint to the US Federal Trade Commission on Tuesday saying Microsoft used its dominant position in enterprise software to push customers towards its cloud services, The Information reported on Wednesday.

Microsoft used the licensing terms in its Office 365 productivity software to lock customers into separate contracts with its Azure cloud server business, Google’s complaint said, according to the report.

There is intense rivalry between the two US tech giants in the fast-growing, multi-billion-dollar cloud computing business, where Google trails market leaders Amazon.com and Microsoft.

The sector has recently drawn greater regulatory scrutiny, including in the United States and in Britain, because of the dominance of a few players and its increasingly critical role as more and more companies shift their services to the cloud.

In March, Google Cloud had accused Microsoft of anti-competitive cloud computing practices and criticized imminent deals with several European cloud vendors, saying these do not solve broader concerns about its licensing terms.

Earlier this year, the FTC had said it is seeking information from the public on the business practices of cloud computing companies, including details on their market power, competition and potential security issues.

Google and Microsoft did not immediately respond to Reuters’ requests for comment, while the FTC declined to comment.

© Thomson Reuters 2023


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Tencent to Cut Cloud Services Prices by Up to 40 Percent to Match Rivals

Chinese internet giant Tencent Holdings is cutting prices for cloud services by up to 40 percent from June amid similar moves from rivals that have plunged the sector into a price war.

The fierce competition comes amid soft corporate demand, with the Chinese economy in the midst of a wobbly recovery since abandoning strict COVID-19 restrictions last year.

Alibaba Group Holding said last month it would slash prices for some cloud products by up to 50 percent. State-owned China Mobile joined Tencent on Tuesday in announcing cuts, saying prices for some services would be reduced by up to 60 percent for a limited time.

Charlie Chai, an analyst at 86Research, said Chinese cloud service providers had in the past made efforts to avert a price war but “at the end of the day they still went down this path”. He noted the companies had expanded aggressively and now had too much capacity.

Wei Yunfeng, a researcher at data firm IDC, said the price cuts were triggered in part by high sales targets despite slowing growth for the market.

Chai said a more challenging cloud market would force companies to focus on product differentiation and that Baidu was well positioned as it had “unique, AI-centric products”.

“For participants that choose to join the war, the near-term margin impact can be significant,” he said, estimating it could take 4 to 7 percentage points off their cloud operating profit margins.

Alibaba’s cloud revenue accounts for about 9 percent of its total revenue. Tencent does not provide separate figures for cloud revenue.

Tencent on Wednesday marked a return to revenue growth in the first quarter as it recovered from COVID-related disruptions and a regulatory freeze on gaming licences a year earlier.

James Mitchell, Tencent’s chief strategy officer, told analysts on a call: “The impact of price cuts on Tencent as a whole is not notable.”

Mitchell said cloud services only represent “a mid single digit percentage” of Tencent’s total revenue.

Moreover, price cuts only apply to its infrastructure-as-a-service business, which represent only a portion of Tencent’s cloud services.

Alibaba reports on Thursday.

© Thomson Reuters 2023

 


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