Latest report reveals that E-commerce giant Alibaba has announced an additional $1 billion (£641,000) investment in Aliyun to expand the international presence of its cloud computing arm.
Aliyun currently provides public cloud services in five data centres across China and Hong Kong, while earlier this year their first overseas data centre, in Silicon Valley, was launched.
The money will also be used to develop new cloud and big data solutions for its customers, as well as support an “alliance-based global cloud computing ecosystem.” Report states.
“Aliyun has become a world-class cloud computing service platform that is the market leader in China, bearing the fruits of our investment over the past six years,” said Alibaba CEO Daniel Zhang in a statement. “As the physical and digital are becoming increasingly integrated, Aliyun will serve as an essential engine in this new economy.”
The Chinese cloud computing market is expected to ignite. A recent article from Bain & Company argues that, by 2020, China’s cloud computing is set to break the $20bn barrier, compared to just $1.5bn two years ago. Currently, cloud computing represents less than 2% of Alibaba’s overall revenues – but the company hopes for that to change soon.
Aliyun has Huawei as a competitor in the public cloud segment, reprt also cited that Huawei is planning a launch event at the end of July 2015 to officially release its own cloud services.