$1 Billion: How Much Alibaba Will Invest In Cloud Computing
July 30, 2015
Grazed from TechTimes. Author: Alexandra Burlacu.
China’s Alibaba is planning to invest a massive $1 billion into its Aliyun cloud computing business in the next three years. With this notable investment, Alibaba’s Aliyun is gunning for Amazon and its Web Services division, heating up the competition between the two e-commerce companies.
Analysts estimate the global cloud computing market is worth roughly $20 billion, and Alibaba wants a bigger piece of the pie. The company announced that its investment will help set up new data centers for Aliyun in various regions across the globe, including Singapore, the Middle East, Europe and Japan. Moreover, the company also intends to sign business deals with enterprise technology and telecom providers in those markets…
So far, Amazon and Alibaba have not been direct competitors in e-commerce, i.e. their core business, outside of China. The upcoming global expansion of Aliyun, however, will pit the company against Amazon Web Services (AWS), which has proved to be an important and lucrative business division for Amazon…
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