Alibaba Cloud seals EMEA-wide distribution deal to ramp up its business

Alibaba's HQ in Hangzhou

The deal with US-headquartered Arrow is expected to bring along extra cloud revenues in Europe and build on the progress reported in the company’s last quarter.

Arrow Electronics has signed an EMEA-wide agreement with China’s Alibaba Cloud to distribute its full suite of cloud services.

Alibaba Cloud established its presence in the UK last year with the launch of two data centres in the London area, adding to its presence in Frankfurt, Germany where it does business from an ex-Vodafone data centre.

For its last quarter, Alibaba reported that its cloud revenues had increased by 66% annually. At a dollar equivalent of US$1.13bn, the cloud business is still only worth around 6% of Alibaba’s total income, but if the Chinese company sees the same rapid value growth that AWS has seen at Amazon it will be very happy.

On the company’s earnings call, Alibaba CEO Daniel Zhang said then: “We are focusing on delivering high value-added services while rationalising our offerings of commodity products and services. We will continue to execute our strategy of expanding our market leadership, increasing investment in talent and technology infrastructure and developing new value-added products.” And that includes higher margin cloud services.

On the new deal, Alexis Brabant, VP of sales of Arrow’s enterprise computing solutions business in EMEA, said: “Growing rapidly, Alibaba Cloud is one of the biggest public cloud providers globally and our agreement will bring, in particular, smaller- and medium-sized channel players the opportunity to work with Alibaba Cloud in the EMEA market,” said.

He added: “As we are moving into the world of multi-cloud, our clients can now choose from an even broader range and variety of solutions and services tailored to their end customers’ needs. Arrow continues to build out its strong cloud solutions portfolio to serve and support analytics, blockchain, AI, IoT and security applications for businesses.”

Max Tao, senior manager of alliances at Alibaba Cloud International, said: “As a global leader in data intelligence, we understand the opportunities that cloud technologies can create for channel partners.

“We are excited to collaborate with Arrow for its first-class services, cloud-enablement capabilities and local expertise.”

He added: “We will work together to help more regional and local channel companies start their journey into cloud and data intelligence.”