Alibaba enters the US cloud computing market

Original author: Michael Kan
  • Transfer

The Chinese Internet giant Alibaba Group enters the US cloud computing market, where it will compete with Amazon, Google and Microsoft: this giant's subsidiary, Aliyun, the largest cloud provider in the Chinese market, has opened its data center in California.

At first, the company may have small income from business in the US, but Charlie Day, an analyst at Forrester Research, said: “I think this is a good move, especially after the IPO. Every investor wants to know if Alibaba has global potential. ”

Last year, Alibaba conducted an IPO of $ 25 billion. The company operates two of China's largest online stores and has become a presence in the cloud computing market.

Alibaba's cloud service has more than a million customers in China, where it competes with Amazon and Microsoft.

A cloud service from a Chinese company can attract new customers from the United States. But not all Chinese companies have achieved good results in the US market. For example, in 2012, suppliers of network equipment Huawei and ZTE were criticized by Congress because of the possible influence of the PRC government on these companies.

“Using Alibaba’s proprietary technology for the cloud business can lead to problems,” said Day. “This makes Alibaba completely different from Amazon and Microsoft,” he added.

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