Date
6 December 2016
Alibaba Cloud expects to capture 7.8 percent of the world market for cloud computing, which is led by Amazon and Microsoft. Photo: Reuters
Alibaba Cloud expects to capture 7.8 percent of the world market for cloud computing, which is led by Amazon and Microsoft. Photo: Reuters

Alibaba Cloud expands global reach with four new facilities

Alibaba Cloud plans to open four new data facilities outside China as it seeks to grab global market share from leading players Amazon.com Inc. and Microsoft.

The data facilities in Dubai, Germany, Japan and Australia will extend the reach of China’s leading cloud computing service provider to every major continent, Reuters reports.

It marks the latest step in the cloud unit’s US$1 billion infrastructure investment drive.

Also known as Aliyun, the unit has flourished domestically thanks to Beijing’s strategic emphasis on building homegrown cloud technology while foreign firms have grappled with stringent licensing restrictions.

However, it accounts for a much smaller slice of the global market for cloud computing, defined as the storage of data on remote networks rather than local servers, which is expected to reach US$135 billion by 2020, according to research firm Canalys.

Alibaba Cloud is forecast to take 7.8 percent of that market, while leading players Amazon.com Inc., Microsoft, International Business Machines Corp. and Alphabet Inc are expected to account for 69.1 percent.

Yu Sicheng, general manager of Alibaba Cloud’s international business, said the unit’s strength in China was a significant advantage and a lynchpin in the company’s globalization plans.

“We have the US, Europe plus China, which is quite difficult,” he told Reuters in an interview.

The new additions bring Alibaba Cloud’s total number of foreign cloud facilities to eight, surpassing the six within China, though the majority of the company’s data volume remains within China.

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