Menu
Alibaba eyes cloud computing expansion with $1 billion investment

Alibaba eyes cloud computing expansion with $1 billion investment

The Chinese company has plans to open a second data center in the U.S.

Alibaba’s IPO marks a new era for Chinese brands in the world

Alibaba’s IPO marks a new era for Chinese brands in the world

Enterprise customers can expect to hear more from e-commerce giant Alibaba Group. The Chinese company is accelerating the global expansion of its cloud computing business, with a US$1 billion investment.

Alibaba announced the move on Wednesday, months after it opened its first data center in the U.S., in an effort to target customers there.

The Chinese company clearly has more in store. Part of the $1 billion investment will go toward the international expansion. The rest will go to developing new products, and building up partnerships with other companies in the industry.

Although Alibaba is well known for its e-commerce activities in China, the company has also emerged as the leader in the country's cloud computing market, according to analysts. It has attracted major clients including Chinese government agencies, as well as local gaming and financial firms.

The company now wants to tap the global market. It has plans to build more data centers in Europe, Japan, Southeast Asia and the Middle East. Earlier this month, Alibaba said it plans to build another data center in the U.S., although it declined to offer details.

The cloud computing business could certainly help Alibaba drive additional growth, but it will also face fierce competition, especially in the U.S., where Amazon, Google and Microsoft already have a major presence. To attract customers, Alibaba in July announced a "data protection pact," vowing to keep its users' data secure.

Alibaba's pact is more of a marketing move, according to Charlie Dai, an analyst with Forrester Research. Customers value security, and Alibaba wants to prove that its technology can provide it, he said.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesAlibaba Groupcloud computinginvestmentsinternet

Slideshows

Meet the leading HP partners in New Zealand...

Meet the leading HP partners in New Zealand...

HP has recognised its top performing partners in New Zealand at the second annual 2016 HP Partner Awards, held at a glittering bash in Auckland. The HP Partner Awards recognises and celebrates excellence, growth, consistency and engagement of its top partners. This year also saw the addition of several new categories, resulting in 11 companies winning across 11 award categories.

Meet the leading HP partners in New Zealand...
Channel comes together as Ingram Micro Showcase hits Auckland

Channel comes together as Ingram Micro Showcase hits Auckland

Ingram Micro outlined its core focuses for 2017 at Showcase in Auckland, bringing together the channel for a day of engaging keynotes, compelling breakout sessions and new technologies.

Channel comes together as Ingram Micro Showcase hits Auckland
Show Comments