Headline April 23, 2015/ ''' ALIBABA CLOUD COMPUTING '''


ALIBABA GROUP HOLDING LTD, just last month, set about  launching a cloud computing hub in Silicon Valley, the e-commerce giant's first outside of China-

Underscoring the global ambitions in the face of stiff and some very entrenched competition.

The new California data centre marks the Chinese company's latest measured expansion onto American soil, and into  a hotly contested US market now dominated by Amazon.com Inc, Microsoft Corp and Google Inc.

Alibaba's  Aliyun  cloud division intends the new data center to cater initially to Chinese companies with operations in the United States, including retail, Internet and gaming firms.

It will later target US businesses seeking a presence in both countries, Ethan Yu, a vice president at Alibaba who runs the international cloud business, told Reuters.

''This is not a very strategic move for us,'' Yu said, declining to say how much Alibaba invested in the data center or disclose its location for security reasons.

''International expansion is actually a company strategy in the coming few years.'' 

''Eventually we may expand to other regions, for example the east Coast or middle part of the US, if our customers have the demand for that.

Aliyun, which has been likened to a budding version of Amazon Web Services, began as a part of the company's inhouse technical infrastructure but has since expanded to lease processing and storage space for small and medium Internet businesses in China.

While Alibaba dominates e-commerce in China, Aliyun, also known as Alibaba Cloud Computing, holds about  23%  in its home market. It faces both Chinese and foreign competitors, from carriers like China Telecom to Microsoft and Amazon.

Its existing data centres span the Chinese cities of Hangzhou, Qingdao, Beijing, Shenzhen and Hong Kong 

AliBaba is kicking off its US cloud business as American corporations and politicians are protesting what they see a Beijing's efforts to curb foreign technology at home.

Chinese government controls limited foreign competition and disrupted many online services, including Google's and Amazon Web Services, according to censorship watchdogs.

Lately, US President Barrack Obama sharply criticized Chinese regulations that subject overseas companies to arduous measures regarding data management.

A more immediate concern may be how Alibaba intends to vie with the likes of Amazon.

Microsoft and Google which are slashing prices on cloud services to try and sustain double-digit growth. They are battling over a public cloud services market that could grow into an  $100 billion industry by 2017, according to researcher IDC.

US customers are not expected to be bothered by service's Chinese ownership if pricing is competitive.

Alibaba has big plans for Aliyun, which now accounts for about  1 percent  of its revenue but supports its core  e-commerce operation and will also play a pivotal role in the long run.

Alibaba sees cloud computing as key to its plan to aggregate and analyze the vast quantities of data it collects, including the consumer behaviour.

In recent months it has made headway in emerging markets from Russia to Brazil, but the company has taken a cautious, calculating approach in the US market.

The northern California market data node would serve internal Alibaba businesses, like AliExpress, its online B2C platform for buyers outside of China, as well as external public cloud clients, Yu said. He declined to disclose details about potential clients.

But cash-strapped startups generally rely heavily on cloud service providers to power their services.

On the same hand, there are actually lots of US customers, US enterprises who look forward to setting up lots of data centers in China to serve their Chinese based customers.

How the global market now composes itself, as the competition heats up, and all markets get hotly contested. will be a far reaching development spinning the technology world to other levels. 

With respectful dedication to the users Cloud Computing Services the world over. See Ya all on !WOW!   -the World Students Society Computers-Internet-Wireless:

''' Briefs '''

'''Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless


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