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Alibaba Expands Cloud Computing Reach in Asia and Beyond

Strategic Insights

— 1 min read

Alibaba Group Holding is strengthening its presence in cloud computing across Asia, with ambitions to expand into the US and European markets. The Chinese e-commerce leader has partnered with top technology brands to enhance its cloud computing services, which currently account for 2% of its revenue. Alibaba's cloud computing unit, Aliyun, has announced partnerships with Singtel, Equinix, Linkbynet, PCCW, and Intel, underscoring its commitment to building out its data center infrastructure and expanding its customer base.

Key Takeaways:

  • Alibaba's cloud computing unit, Aliyun, has partnered with Singtel, Equinix, Linkbynet, PCCW, and Intel to expand its cloud computing services.
  • Aliyun's new program aims to bring customers the best cloud computing solutions by partnering with respected technology brands.
  • Alibaba has 1.4 million cloud customers, including merchants, mobile app developers, and digital entertainment firms.
  • Aliyun competes with telecom firms and other cloud computing providers in China, including 21Vianet, China Net Center, and Tencent Holdings.
  • Alibaba's cloud computing revenue is estimated to grow 94% in its fiscal 2016 ending March 31, 2016, to about $550 million, according to Citigroup.
  • Aliyun has opened data centers in Silicon Valley, Hong Kong, and Beijing, with plans to expand to other locations in Asia and the US.
  • Intel will cooperate with Aliyun on technology initiatives, targeting the data center server market.

Statistics:

  • Aliyun's cloud computing revenue is estimated to grow 94% in its fiscal 2016 ending March 31, 2016, to about $550 million (Source: Citigroup).
  • Aliyun has 1.4 million cloud customers (Source: Alibaba).
  • Amazon Web Services (AWS) has 0.49% operating profit margin, with Q1 revenue of $1.57 billion and net income of $265 million (Source: Amazon.com).
  • Alibaba's cloud computing services account for 2% of its revenue (Source: Alibaba).

Sources:

  • Citigroup report on Alibaba's cloud revenue growth estimate
  • Alibaba press release on Aliyun partnerships
  • Amazon.com financial data for Q1 AWS revenue and net income
  • Alibaba report on cloud customers and revenue
  • Morgan Stanley report on competition in the Chinese cloud computing market
  • Intellectual Ventures report on Intel's data center server market target

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