Guess who is up challenging cloud computing giants like Microsoft, Amazon, IBM and Google? It is – Alibaba Cloud which is primarily the cloud computing part of Alibaba Group. The online marketplace company has announced to launch 4 new data centers worldwide. The countries in which the group is looking forward to open its data centers are U.A.E., Australia, Germany and Japan. It is being seen as a strategic move by Alibaba Cloud which will soon increase its number of data centers outside China to 8. Moreover, the cloud entrant will establish its presence in almost every continent with the new launches.

Simon Hu President of Alibaba Cloud
Simon Hu President of Alibaba Cloud

Simon Hu, the President of Alibaba Cloud commented, “Alibaba Cloud has contributed significantly to China’s technology advancement, establishing critical commerce infrastructure to enable cross-border businesses, online marketplaces, payments, logistics, cloud computing and big data to work together seamlessly. We want to establish cloud computing as the digital foundation for the new global economy using the opportunities of cloud computing to empower businesses of all sizes across all markets,”

Alibaba Cloud which is also known as Aliyun has plan to open more data centers in coming times especially in regions like Middle East, Southeast Asia and Europe. They also plan to establish partnership with local companies dealing in SaaS (Software-as-a-Service) and PaaS (Platform-as-a-Service) areas. The cloud company is ready to formulate customized as well as localized strategies which will ultimately help them in catering to unique needs of local markets.

The reason why we must see Alibaba Group as an upcoming key-player and differentiator in global cloud computing market is that it has got great potential which the group has proved time and again. A recent citation of this belief is the way it conducted Global Shopping Festival where all Alibaba’s online marketplaces were backed by the company’s cloud technology. The shopping festival witnessed record-setting 175,000 transactions per second in peak traffic spikes. Cloud computing giants will have to take this competitor seriously and not underestimate its potential to capture cloud market in coming years.

Aliyun has even opened two datacenter facilities in United States. The Chinese company even envisions to open new data centers in United States but are waiting to see how Trump Presidency will change the relations of the both countries. Ethan Yu who holds position of General Manager of Alibaba Cloud Global pointed out – “We will be in a much better position in a few months down the road. For me, a very positive relationship between China and the U.S. will be helpful for all business moving forward. From our perspective, we will focus on our business first,”


JVs (Joint Ventures) that has helped Alibaba Cloud to expand its reach to new areas are as listed below:

  • Japan: Softbank
  • Europe: Vodafone Germany
  • Middle East: Meraas Holdings