Story image

Alibaba Cloud making global moves with new data centre

05 Feb 2019

Ten months after launching its first data centre in Indonesia, Chinese tech behemoth Alibaba Group’s cloud computing arm has launched a second data centre. 

This strategic move will not only help the company to establish an early presence in Indonesia and diversify its business but also bolsters its international presence at a time when economic growth slackens and trade risks loom over China, says GlobalData, a leading data and analytics company.

Alibaba posted 41% growth in year-on-year overall revenue to $17 billion for the quarter ending 31 December 2018. 

Revenue from cloud computing business grew strongly by 84% to $962m during the reporting period. 

The company’s success up until this point has been mainly in China. However, the company is now looking for growth internationally.

“Outside of China, the company has gained some advantages by getting into markets such as Malaysia and Indonesia early,” GlobalData technology analyst Siow Meng Soh. 

“Indonesia is experiencing economic growth but its cloud market is relatively small. This is a strategic move since start-ups and SMEs, in general, are more ready to adopt a cloud-native approach and can become heavy cloud users as they scale up.”

GlobalData estimates the Indonesian infrastructure-as-a-service (IaaS) market in 2018 to be worth only about $90 million (about 1% of the Asia-Pacific (APAC) cloud market).

“This is partly due to the lack of infrastructure and the presence of hyper-scale cloud providers in the country,” Soh adds. 

“This is expected to change as more competitors enter the market. For example, Google Cloud announced in November 2018 that Jakarta would become its eighth market in APAC.”

The second data centre enables Alibaba Cloud to increase capacity, provide higher availability and improve disaster recovery capabilities. 

“Alibaba is investing heavily to stay ahead in product innovation, as well as expanding its coverage and partner ecosystem. The company is expected to maintain its growth momentum and more service providers are expected to offer managed Alibaba Cloud,” Soh concludes.

Why an IT resilient strategy needs to be in the modern CIO’s toolkit
"Having an IT resilience strategy in place allows an organisation to smoothly adjust to change."
Tollring partners with Novum Networks for call analytics
Novum Networks has added the full complement of Tollring’siCall Suite cloud analytics to its product portfolio.
Intel announces “most powerful mobile processors ever”
Improvements in performance, responsiveness and Wi-Fi connectivity will be rolling out for gamers and creators alike.
Software AG launches new cloud-based IT portfolio management tool
“Alfabet FastLane’s out-of-the-box approach absolutely addresses the needs of smaller IT teams."
Slack's 2019 feature roadmap unveiled
Including shared channels across organisations, workflow automation, greater email and calendar integration, and streamlined search.
Data#3 wins learning and development award two years running
Chief Learning Officer magazine’s LearningElite programme honours the best organisations for learning and development.
Avaya partners with Standard Chartered to deliver CX transformation
"Avaya is proud to be supporting this venerable financial institution as it continues to evolve and transform to meet the needs of its clients.”
Hootsuite leads the social engagement charge - Forrester report
“Hootsuite leads the pack with its seller focus and scale,” writes Forrester principal analyst Mary Shea.