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 Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesAlibaba Groupcloud computinginvestmentsinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?