Alibaba to Ramp Up Its Presence in Cloud with Four New, International Data Centers

23 Nov

By Mudit Mohilay, The Tech Portal

Alibaba Cloud is looking to add to its capabilities. The cloud arm — that sound strange? — of the Chinese behemoth is opening up four brand new facilities, according to a recent announcement from Alibaba Holdings limited. The new facilities come as part of the company’s $1 billion infrastructure investment drive.

Interestingly enough, the new facilities will be based in Dubai, Germany, Japan and Australia. Scattering its newest data centers across the world will increase the reach of the cloud computing service provider to every major continent on the planet. The move will also allow it to get into a better position to square off against the likes of Amazon and Microsoft, both of which also provide cloud services.

Alibaba Cloud, which is also known as Aliyun within China,  has been flourishing inside the country – thanks to its discriminatory policies and the stringent rules foreign firms have to deal with — particularly when they are dealing with something as sensitive as data belonging to the Chinese public. Aliyun being a domestic enitity, found the laws more easier to deal with and grew quickly within the Chinese market.

However, it still has a relatively small presence in the international market. With its new data centers though, the company expects to ramp up its presence on the global stage. While Inc, Microsoft, International Business Machines Corp and Alphabet Inc are expected to together account for 69.1 percent of the global cloud market, Alibaba is expected to capture slightly less than 8 percent of the total.

This move also takes the total number of Aliyun facilities outside China up to 8. This is 2 more than than the 6 facilities it has inside the country. In all fairness though, going by the volume of data, China will still beat the rest of the world on Aliyun’s map. The company has already said that its business in China plays a very significant role in its plans and is expected to continue to do so in the foreseeable future.

Alibaba Cloud is launching its new facilities in conjunction with Vodafone in Europe, Softbank Group Corp in Japan, YVOLV in Dubai and Meraas Holdings LLC in Australia.

The new units are expected to boost Alibaba’s already flourishing cloud business. Cloud has seen seen six quarters of consecutive triple-digit growth for the Chinese behemoth and has become Alibaba’s fastest growing business sector. The company wants to keep the momentum going and rather than eye profits, will be prioritizing growth.