China’s gargantuan e-commerce company Alibaba is opening a cloud computing hub in Silicon Valley, its first such center outside of China. The move is in synch with their global ambitions despite tough competition in their niche.
The California hub is at an undisclosed exact location, kept secret for security reasons. It is situated somewhere in the hi-tech capital fondly referred to as Silicon Valley, denoting an area south of San Francisco. Alibaba enters an already crowded marketplace dominated by such on-line giants as Amazon, Microsoft and Google.
The data center, Alibaba’s Aliyun cloud division, will first provide service to Chinese companies that have branches in the US. Included are retail, internet and gaming companies. In the future the center will seek out US companies that would like to expand out to the Chinese market.
Ethan Yu, an Alibaba vice president in charge of the firm’s international cloud business explained:
“This is a very strategic move for us,” Yu said. “International expansion is actually a company strategy in the coming few years. Eventually we may expand to other regions, for example the East Coast or middle part of the U.S., if our customers have the demand for that.”
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