Alibaba opens first U.S. cloud center, enters hotly contested market
Brace yourself for a new cloud computing hub from Alibaba.
On Wednesday, Alibaba Group and Holding Ltd announced that there will be launching a new cloud computing hub in Silicon valley and it will be the ecommerce’s first cloud computing hub which has been constructed outside of China, underscoring the company’s global ambition if the face a very competitive field.
The new data center which is set to be launched b Alibaba is the company’s latest move to expand in the U.S. soil, and into a field which is highly competitive and is currently being dominated by American companies such as Microsoft.com, Amazon.com as well as Google Inc.
The company’s Aliyum cloud division seeks to cater to Chinese companies which have set base in the U.S., including Internet, retail and gaming firms. The company is expected to later target the businesses in the U.S., said Ethan Yu, Alibaba’s vice President who is in charge of running international cloud business for the company.
"This is a very strategic move for us," Yu said, declining to give the exact cost that was required for developing the data center or even disclosing the area where it will be located citing security reasons."International expansion is actually a company strategy in the coming few years."
In addition to that Yu added that, "Eventually we may expand to other regions, for example the East Coast or middle part of the U.S., if our customers have the demand for that."