Saturday, November 25, 2017

Alibaba cloud data centres heading to Indonesia and India

Race to build the largest cloud footprint in Asia heats up with Alibaba following recent announcements from rivals such as Oracle.

China’s largest cloud operator, Alibaba Cloud, has set out plans to build two data centres in India and Indonesia as the company continues to bet in the Asian market as Western rivals up their regional investments.

According to Canalys, Alibaba was at the end of 2016 the world’s fifth largest cloud infrastructure operator, only behind AWS, Microsoft, Google and IBM.

The two new data centres are to be located in Jakarta and Mumbai and are expected to be operational before the end of the company’s fiscal year, ending March 31, 2018.

The facilities are to serve the markets where they sit in by providing a “full suite” of cloud services.

Simon Hu, senior vice president of Alibaba Group and President of Alibaba Cloud said: “Establishing data centres in India and Indonesia will further strengthen our position in the region and across the globe.”

Both India and Indonesia have seen in recent months a growth in their data centre investments, mostly driven by a growing adoption of mobile technologies as well as the appearance of several cloud-based businesses and governments’ plans to build smart cities, especially in India, where Prime Minister Narendra Modi has put forward a $15bn program for urban digital modernisation.

In Indonesia, Alibaba said the data centre is to be built in in line with the Indonesian government’s “1,000 Start-ups Movement” scheme.

The scheme has been put in place to support 1,000 companies by 2020, with the goal of reaching a combined valuation of $10bn.

Alibaba has also partnered with the Global Cloud Exchange, a Reliance Communications subsidiary, to provide customers direct access to Alibaba Cloud Express Connect via GCX’s Cloud X Fusion platform.

The Chinese’s giant data centre footprint accounts today to 17 facilities in locations including mainland China, Australia, Germany, Japan, Hong Kong, Singapore, the United Arab Emirates and the United States.

The company has also said it plans to build data centres in Malaysia aimed at small and medium enterprises (SMEs).

Alibaba released its financial results for the fiscal year 2017 last May with revenues topping $22.99bn, fuelled by its cloud business, similarly to what has happened with AWS.

Alibaba Cloud revenues jumped 121% to $968m with paying cloud customers increased by 70% to 874,000.