Alibaba may be taking on Amazon in another key category

The Chinese e-commerce giant announced on Wednesday that its cloud computing business, Aliyun, is entering the U.S. market with a new data center located in Silicon Valley.

“Now, Aliyun hopes to meet the needs of Chinese enterprises in the United States, and the ultimate objective of Aliyun is to bring cost-efficient and cutting-edge cloud computing services to benefit more clients outside China to boost their business development,” Ethan Sicheng Yu, vice-president of Aliyun, said in a statement.

A rep for the company said the service is available to U.S. customers starting Wednesday. Aliyun will offer customers a free six-month trial of its elastic computing service.

The entry would seem to put Alibaba into closer competition with comparable cloud offerings from U.S. tech giants, including Amazon, Google and Microsoft.

Forrester Research projected last year that business spending on cloud computing offerings would hit nearly $200 billion by 2020, perhaps explaining why so many established tech companies are trying to claim a piece of the space.

Alibaba raised $25 billion in its public offering last year, making it the largest IPO in history, and giving it ample funds to invest in startups, smartphones, drones and pretty much anything else it can dream up.

The company’s stock has dipped through much of this year, now hovering around an all-time low of $80 a share.

About Olajide Olutuyi

Entrepreneur Social Entrepreneur. Calgary Flames fan. Calgary Stampeders fan. Supports conscious capitalism.Progressive conservative( supports sin taxes, low taxes and laissez-faire economy). Former rap fan. Now listens to gospel and country. Believes in volunteering and community service as agents of developmental change. A lot of my time goes into community service, reading, encouraging people and most importantly God’s business. Loves culture , business start-ups and politics of both my home and adopted countries. This is my blog. The opinions and thoughts in my article are mine and I make no mistakes for having them. You may also find articles, news or opinions of others that I agree with or love to keep. More information about my professional background and interests available on my LinkedIn page.
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