The Aliyun unit will use the funds in part to set up cloud computing centres in Singapore and Japan, as well as in the Middle East and Europe, Alibaba said in a statement.
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Chinese e-commerce giant Alibaba is upping its investment in cloud computing, with a new, $1 billion cash infusion, making it more of a competitor to Amazon, Google, and Microsoft than ever before.
All of this aligns with what Alibaba CEO Daniel Zhang said recently, that the company must expand globally if it wants to survive.
Alibaba is stepping up its cloud computing game with a $1 billion (£640m) investment in the technology.
“This additional US$ 1 billion investment is just the beginning; our hope is for Aliyun to continually empower customers and partners with new capabilities, and help companies upgrade their basic infrastructure”.
Most of Aliyun’s global customers are Chinese companies operating outside the mainland, Aliyun President Simon Hu said last week.
Aliyun also plans to use the new funding to develop new cloud and Big Data solutions, and reach new partnerships and technology alliances that the company considers to be vital for its global expansion.
“We see that Amazon took 10 years to get to where it is today”, Mr. Hu said last week.
Amazon has been able to invest in its Prime program and on innovation because of the patience of its investors, and, especially in recent quarters, the financial performance of its AWS web services unit. Aliyun is pushing for the development of a worldwide cloud “ecosystem” through collaboration with regional partners, leveraging their expertise to provide one-stop cloud services tailored to the needs of local business customers.
Analysts say Aliyun is considered a leader in public cloud services in China, with a client base made up mostly of small and midsize companies. Aliyun already hosts five data centers in China and Hong Kong.
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China’s nascent cloud market is growing rapidly, according to consulting firm Bain & Co.
