Amazon to Expand Its Operations in Israel

Inbal Orpaz
Raz Smolsky
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A package leaving the Amazon website packing line.Credit: Bloomberg via Getty Images
Inbal Orpaz
Raz Smolsky

Amazon, the giant online retailing and cloud computing company, plans to expand its presence in Israel, TheMarker has learned, and is expected to rent space to accommodate about 150 employees, apparently in Herzliya.

The facility will enable Amazon not only to expand operations but also to consolidate its cloud computing presence here, relating to the storage of data and sharing of resources on remote computers rather than the users’ own computer systems, in addition to Amazon’s research and development operations in Israel. These operations are currently scattered at a number of facilities in the Tel Aviv area, including a 600-square-meter office near the Ramat Gan Diamond Exchange, with about 30 employees.

Amazon, which declined to comment for this report, has hired the services of the Jones Lang LaSalle real estate consulting firm to locate about 3,000 square meters (about 32,000 square feet) for the new offices, and if it is unable to find space that suits the company, it is expected to look elsewhere in the Tel Aviv area.

The staff currently located in Ramat Gan is part of Amazon Web Services, Amazon’s cloud computing operations, and is expected to move to the new facility. The Ramat Gan staff is engaged in marketing, sales, customer support and cloud computing facility planning for clients. The Amazon website is currently advertising about 10 open positions in the field here.

Compared with other American Internet and tech giants that have a presence in the Israeli high-tech sector, Amazon was a relative latecomer. Its main development presence in the country is built around its acquisition of Yokne’am-based Annapurna Labs just this past January, for about $360 million. Annapurna is now also part of Amazon’s cloud computing operations, but it is thought unlikely that Annapurna, which is in the north, would move to Amazon’s new facility in the center of the country.

Until Annapurna, Amazon’s activities here were out of the public eye and involved the development of a cloud solutions brand.