Alibaba says it will pour US$1b into Aliyun unit
Print Edition
ALIBABA Group said yesterday that it will invest a further 6 billion yuan (US$1 billion) into its cloud computing unit Aliyun to challenge Amazon.com Inc’s lucrative Web Services division, opening a global front in the battle between the two e-commerce giants.
The money will also be used to fund infrastructure research in areas such as computer chips and network hardware, said Alibaba Chief Executive Officer Daniel Zhang.
Aliyun currently has four data centers in China’s mainland — in Beijing, Hangzhou, Qingdao and Shenzhen — one in Hong Kong and one in Silicon Valley in the United States.
It said earlier that it is planning to open new facilities in Hong Kong, the US, Singapore, Japan and the Middle East.
Though Alibaba and Amazon have so far avoided competing directly in their core business outside China, Aliyun’s international expansion takes aim squarely at Amazon Web Services. Amazon led the global cloud infrastructure market last year with a 28 percent share, according to Synergy Research Group.
Also yesterday, Aliyun formed a strategic partnership with Chinese enterprise software vendor Yonyou to offer cloud infrastructure services to Yonyou’s customers.
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