Alibaba, the Chinese e-commerce giant, has been looking to the cloud for its next growth spurt. And according to a new report tomorrow will mark the launch of the company’s first data center in the US.
Reuters reported today, the data center will be located in Northern California and is intended for Chinese companies that want to operate int he US.
Venture Beat concluded, “But even if Alibaba’s Aliyun cloud is targeting Chinese companies for the American expansion, the company presumably is eager to pick up business from U.S. companies, which have gravitated more toward public cloud market leader Amazon Web Services, or others, such as Microsoft Azure, Google Compute Engine, or IBM SoftLayer.”
Cloud computing and Internet infrastructure only represent a small amount of Alibaba’s overall business. Equating to only 1% of all revenue for the company in it’s 2014 fourth quarter, according to their latest earnings report. However, if you look at the bigger picture the growth is steadily increasing, coming in at 85 percent year after year.