Alibaba Holding sets up International Business Headquarters in Singapore

The Chinese e-commerce titan chose Singapore due to it stable political, economic and diverse environment and believes that expanding will lead to recognition in the international market and ultimately higher profits.

The e-commerce giant has picked Singapore as its new overseas business headquarters and a new site for its cloud computing platform. Lately, the company had been working on its growth strategy for Aliyun, Alibaba Group cloud computing service. The service is expected to open its Singapore Data Center in September, 2015.

The company has been working on its expansion strategies for Aliyun, as its competitors like Microsoft and Amazon are comparatively well-rooted considering that Alibaba Group Holding ltd.’s cloud service is fairly new. According to Tech experts, currently this cloud computing service can help Alibaba pick up its pace in the international market and compete with its competitors.

Ethan Yu, Vice President of Aliyun, told CBNC on a telephone call that, this new location can be a strategic center for the cloud service, as the company is still trying to understand the customer needs in the market but this will hopefully become one of the biggest data centers that Aliyun has outside of China and will definitely reach up to the level to compete with the top players. Further he added that Singapore was chosen due to its steady political climate, diverse environment and strong, economical legal system the company, apart from these factors he believes that there is a vigorous demand for cloud services in the country.

The Chinese company launched its cloud services earlier this year at the Silicon Valley, the technological hub. This was the company’s first cloud overseas establishment and further it has plans of launching it at various international destinations which include Europe, Japan and the Middle East. Three months after Aliyun was launched in the Silicon Valley, the company struck global partnerships with Equinix, a U.S based firm and SingTel, a Singaporean Telecom giant. These partnerships allowed the service to grow with in the country as it could use the existing centers of these firms.

 The online shopping company earlier said that in order to strengthen its service the company will be pitching in $1 billion. As mentioned on the CBNC website, in the next two years, the cloud market industry is likely to increase and grow to around $100 billion. All the tech experts have been talking about how the cloud industry is expected to progress and has a very potential successful future. Aliyun has said to have generated $78 million in revenue which is a 106 per cent growth in the revenue of the company, as of the second quarter of 2015 while it holds a 23% market share in China.