Alibaba Group Holding Ltd (NYSE:BABA) continues to race ahead in business. This time, it is Aliyun, the cloud division of the company. According to the recent update, the company has formed key partnerships with global cloud infrastructure companies that will propel it towards intense competition with cloud computing giants like Google Inc (NASDAQ:GOOG), Amazon.com, Inc (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT).
The company has strategically launched its “Marketplace Alliance Program” (MAP). This program allows enterprises to benefit from Aliyun’s cloud services and forms global partnerships for the company. The aim is to create a localized cloud that will be tailored to the needs of the region.
The hybrid cloud will cater to the regional needs of global partners while utilizing their cloud infrastructure. For example, the deal with Intel Corporation (NASDAQ:INTC) will allow Aliyun to utilize existing data centers by the partner company to run its own services. This will reduce infrastructure cost greatly. At the same time, these partnerships will create new markets for the cloud based company. Simon Hu, the president of Aliyun, commented that the consumers will need bigger storage capabilities in the future.
According to sources, the company is trying to provide necessary infrastructure for small to medium size business and these deals are just for that purpose. The partners include Intel Corporation, Singtel, Meraas Holding, Equinix, Hong Kong Telco, PCCW, LINKBYNET and Towngas. These are among the top technology companies in the world. The company is seeking to improve its network efficiency and optimize its cloud solutions.
However, the company will inadvertently face competition with global cloud computing giants. Simon Hu, President of Aliyun, commented that the company is not worried about the competition. The company’s revenue is growing fast with $388 million yuan in profits in the first quarter of this year. That is almost 82 per cent rise compared to last year. The latest partnerships will grow the profits even more.
Sources: cnbc.com
