Alibaba Takes their Computing Cloud to America
Chinese e-commerce giant, Alibaba, has finally decided to take its cloud computing services to competitive US market. The latest move by Jack Ma will put his immensely successful Internet company in direct competition with some of the biggest cloud computing players in the global market that also control the cloud computing industry in the US, including Amazon AWS, IBM, Microsoft Azure and Google.
Currently, Amazon AWS is the largest player in the cloud services market by far, with its revenues being higher than the nearest 4 competitors combined. It is this market that the ambitious Chinese billionaire will be trying to wrest from such big players.
According to a report appearing on CNBC, Alibaba is soon opening its first US cloud center through a number of strategic partnerships with several domestic companies. This will enable the Chinese firm to expand its cloud computing services in the US without having to build a lot of Internet infrastructure locally.
Recently, Aliyun Computing, the cloud computing subsidiary of Alibaba, has announced that it will be partnering with up to 7 tech firms to make sure that Alibaba’s dream of gaining a foothold in the US cloud computing market is realized. Some of these partners include US computer giants Intel and data center service provider Equinix, as well as Singtel from Singapore.
The above partnerships will be part of Alibaba's Marketplace Alliance Program, a strategic program that takes advantage of the market presence of established partners in target markets to offer cloud services to a wider international audience.
Alibaba’s move comes at a period when the cloud market in the US is fast expanding, with a set of statistics released in the recent past painting a very bright future for the Internet. For instance, a study conducted by Cisco forecasts that North America’s cloud traffic will have an impressive growth of up to 26% per year between 2013 and 2018, with only the Asia-Pacific region expected to surpass North America by the year 2018.
According to the IDC, the cloud market in the US alone is expected to be a whopping US $75 billion industry by 2018. This will be far much bigger than the projected US $2 billion for the Chinese market where Alibaba currently has the largest presence.
With such indicators of massive growth to come, it is no wonder that Jack Ma has moved in to jostle for a piece of the American cloud computing pie where few other providers can match his firm’s financial muscle to make an investment that is competitive enough to wrestle the current Big Four.
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