Alibaba Boosts Its Cloud Computing Business To Take On Amazon

Alibaba opened its second datacenter in the United States to boost cloud computing business.

Alibaba Group Holding is the biggest e-commerce business in the world. The company owns and operates multiple online marketplaces which happen to be a platform for various people to do business as well. Recently, it managed to post a record breaking Initial Public Offering (IPO) as well valued at $25 billion. Its founder, Jack Ma, is a visionary man and believes in experimenting a lot. Hence, he tried to do business apart from the online retailing sector as well hence expanded in cloud computing business and recent try is for the entertainment.

As it is believed, Alibaba Group is one of the powerhouses in the cloud computing business. In a short span of time, the company has grown itself into a massive unit of cloud computing sector and is sometimes considered bigger than Microsoft and Google as well. However, its closest rival is Amazon.

According to CNBC, the e-commerce giant has now opened a second datacenter in the Silicon Valley to strengthen its business, whereas Amazon announced a few features of its cloud services to keep up the pace with the Chinese ecommerce giant as well the rapidly growing technology market.

Alibaba’s cloud computing business is named as Aliyun, which will be addressing the increasing demand for secure and affordable, mission-critical cloud computing after opening its second datacenter in the Silicon Valley. It is second datacenter in the United States and the ninth datacenter throughout the world. It is determined to push its cloud business aggressively.

The vice president of Aliyun, Ehtan Yu, stated in a press release on Friday, “Our datacenters are typically located in key innovation and commerce hubs around the world. Our second U.S. datacenter is situated in Silicon Valley which is the epicenter for technology innovation worldwide.”

The company is hoping that the fast growing startups will start using the services of Aliyun. The tech industry throughout the world and especially United States now realizes the significance of the rising Chinese market in the tech sector. Therefore, in order to tap that market it will be using the said services.

Recently, Alibaba launched its second datacenter in Singapore in August and made it the headquarters for the overseas site. CNBC reports, “Cloud computing is one of Alibaba's smallest units, accounting for just 2% of revenues. But it is also the fastest growing with revenues hitting 485 million Yuan ($78 million) in the three months ending June 30, a 106% rise from the same period last year.”