Following a tightening of regulation in China, AWS, Amazon’s cloud computing subsidiary, is forced to sell its infrastructure to a local partner. Resale is estimated at $ 300 million.
The news agency Reuters announced in the morning of November 14, 2017 that Amazon’s Amazon Computing subsidiary, AWS, had been forced to resell its infrastructure in China to comply with the new legislation in place in the country. According to the news agency, the resale was made to Sinnet, a local partner who committed an amount of 2 billion yuan, just over $ 300 million.
AWS still active in China
If the Amazon Web Services (AWS) parent company has not discounted the amount, it has confirmed the resale of its infrastructure to this local partner. At the same time, she boasted a press release published on the specialized media TechCrunch to specify that she did not leave the territory:
“No, AWS has not sold its business in China and remains fully engaged with its Chinese customers to continue to benefit from industry-leading cloud services. Chinese law prohibits foreign companies from owning or exploiting certain technologies to provide cloud services. As a result, in order to comply with Chinese law AWS has sold some physical infrastructure to Sinnet, its long-standing Chinese partner and best seller for its AWS China (Beijing) region […] “
Thus the subsidiary AWS specifies that it still has the intellectual property “worldwide” for all of its services.
Infrastructure monitored by the Chinese government
It was for legal reasons that the Amazon subsidiary was committed to hosting companies like Sinett as soon as it arrived on the territory in December 2013.
Nevertheless, the change in cybersecurity regulation in China, implemented in June 2017, penalizes foreign players who must reproduce the decision of AWS if they want to continue operating in this growing market. Local businesses like Alibaba or Tencent seem to be benefiting.
Since a few months, the ransomwares are more and more numerous and more and more formidable. These malware can block access to a computer until the user agrees to pay a ransom. Faced with this type of attack, companies generally have no choice but to comply with hacker requirements and agree to pay huge sums to recover access to their data. The amount of ransom can reach several millions of dollars. However, cloud computing could present itself as the solution to this problem, but also for the problems of data theft and other hack. The cloud makes it possible to react more quickly to cyberattacks that threaten businesses.
According to Kaspersky, the average cost of a ransomware for businesses is $ 713,000. This cost includes not only the amount of ransom, but also the indirect losses associated with lost data, infrastructure improvements, and brand image degradation. On average, ransom prices do not exceed $ 300. Indirect costs, such as data recovery and network repair, are the most expensive for businesses.
Companies are not sufficiently prepared for cyberattacks
According to Kaspersky, there are two types of ransomware. One is extortion, which consists of forcing the victim to pay to decipher his data, while the second is intended to damage the data, like the recent ExPetya attack. Attacks of this type destroy the data, and the user can not recover them even after paying the ransom. It is therefore preferable to limit the exposure of the data in advance in order to reduce the risk of being a victim of a ransomware.
Despite the huge losses that ransomware can cause, companies remain very poorly prepared for these cyber-attacks. According to a recent poll by Webroot, only 21 percent of US small and medium-sized businesses are really ready to handle these security threats. This negligence is a boon for hackers. It is therefore essential that companies guard against these attacks in all industries.