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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computinginternetbusiness issuesinvestmentsAlibaba Group

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?