Published on : Jul 29, 2015
Alibaba, the Chinese e-commerce giant has plans to invest US$1 billion in its cloud computing arm in a move to escalate its international presence. The announcement was made earlier in the week as the company looks beyond its traditional markets and core business.
The Aliyun unit of the company will utilize funds in part to establish cloud computing centers in Japan and Singapore, and also in the Middle East and Europe, as stated by Alibaba.
Alibaba’s site Tmall.com which is listed on the New York stock exchange is believed to have command on more than half the Chinese market for business to consumer transactions, whereas the Taobao platform of the company holds above 90% market for consumer to consumer transactions.
The Aliyun unit of the company is already offering cloud computing services through few data centers in China and the special administrative region of the company in Hong Kong, which earlier in the year forayed further afield in Silicon Valley, which is the technology hub in the U.S.
As stated by CEO of Alibaba, the additional investment of US$1.0 billion is only the beginning as part of expansion plans of the company.
He further stated that the company hopes Aliyun to continuously empower consumers and stakeholders with better capabilities and help companies to upgrade their fundamental infrastructure.
Alibaba already offers business services to several companies via the Internet ‘cloud’, which includes the U.S chip giant Intel, Towngas based in Hong Kong, and Singapore Telecom.
The company further announced earlier in the week that it has plans to pursue strategic partnership with a Chinese software company, for services such as big data, cloud computing, and other areas.