Alibaba Group Holding Ltd Expands Cloud Computing With Equinix Inc Partnership

Alibaba has partnered with Equinix to expand its cloud computing services in Europe

Alibaba Group Holding Ltd.(NYSE:BABA)is strengthening its cloud computing platform,Aliyun,with the help of a tie-up with Equinix Inc(NASDAQ:EQIX).A partnership with Equinix will grant Aliyun the global exposure it needs in its early stages,as Equinix houses over 105 data centers all over the world.

Equinix is internationally known for facilitating cloud computing platforms and improving their performance.According to Forbes,the Internet services company has helped a number of market leaders,such as Microsoft Azure and Amazon Web Services,to connect with companies across the globe.

As Alibaba continues to grow,it needs a well-established platform to become a global household name.Apparently,the recent partnership will open doors for multinational companies,primarily US-based,to transact with China’s expanding consumer base.More so,it will assist Alibaba and other Chinese companies to penetrate deeper in US markets.As per the partnership accords,the Aliyun platform will be available in Silicon Valley and Hong Kong through Equinix’s Cloud Exchange facilities,as reported by Fortune.The VP of innovation at Equinix,Chris Sharp,told Fortune that both companies are planning to provide Alibaba’s cloud services through Equinix sites to several international markets in the future.

“Our multinational enterprise customers are increasingly asking for access to the Aliyun cloud platform,as they deploy cloud-based application across Asia.By providing this access in two strategic markets,we’re empowering businesses to build secure,private clouds,without compromising network and application performance,”Mr.Sharp added.

With Equinix’s takeover of Telecity in a deal worth$3.6 billion,the Internet services company will be able to acquire 40 more data centers across Europe,ultimately supplementing Aliyun’s expansion plans for Europe.

Presently,Aliyun enjoys a strong hold in China with a market share of approximately 23%.The cloud computing platform has four data centers in Hangzhou,Qingdao,Beijing,and Shenzhen.It also has one data center in Hong Kong.Although Aliyun is a fairly new player in the mature US cloud computing market,there exists a considerable capacity for future growth.Despite being new,Aliyun has managed to put competitive pressure on well-established giants such as,Amazon Web Services S3,Google App Engine,and Microsoft Azure.

The VP of Aliyun,Sicheng Yu,displayed considerable optimism on Aliyun’s growth prospects,especially following the Aliyun-Equinix tie-up.Mr.Yu stated:“Aliyun is very excited about our global partnership with Equinix,who not only has a global footprint of cutting-edge data centers,but has aslo brought together the most abundant cloud players and tenants in the cloud computing ecosystem on its Equinix Cloud Exchange platform.Connecting the Equinix ecosystem with our Aliyun cloud services on Cloud Exchange will provide customers with the best-of-breed choices and flexibility.”

On several occasions,the e-commerce giant has expressed the desire to expand its cloud computing business.At the time of Aliyun’s launch two months ago,Alibaba announced that it intends to hit South Asian and European markets by the end of this year.

On the other hand,,Inc.(NASDAQ:AMZN),a relatively mature player in the cloud computing sector and arch rival of Alibaba,has so far failed to tap into Chinese markets.Amazon Web Services has made attempts to enter China,but Aliyun continues to be a dominant player in the country’s cloud computing sector.

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