Alibaba Group to Invest Additional US$1 billion to Drive Alibaba Cloud Global Growth
July 29, 2015
Beijing, China, July 29, 2015 – Alibaba Group (NYSE: BABA) today announced that it will invest an additional US$1 billion to fuel further growth at Alibaba Cloud, its cloud computing arm, a testament to cloud computing as an important growth area for Alibaba. The additional funding will be used to expand Alibaba Cloud's international presence, extend and support an alliance-based global cloud computing ecosystem, and for the development of new cloud and big data solutions that enable customers to increase productivity, lower costs and scale quickly as their businesses grow.
"Alibaba Cloud has become a world-class cloud computing service platform that is the market leader in China, bearing the fruits of our investment over the past six years. As the physical and digital are becoming increasingly integrated, Alibaba Cloud will serve as an essential engine in this new economy," said Daniel Zhang, CEO of Alibaba Group. "This additional US$1 billion investment is just the beginning; our hope is for Alibaba Cloud to continually empower customers and partners with new capabilities, and help companies upgrade their basic infrastructure. We want to enable businesses to connect directly with consumers and drive productivity using data. Ultimately, our goal is to help businesses successfully transition from an era of information technology to data technology."
Alibaba Cloud is focused on bringing the benefits of user-friendly, cost-efficient and secure cloud computing to businesses around the world. Part of the additional US$1 billion investment will contribute to further international expansion for Alibaba Cloud as part of this globalization strategy. Alibaba Cloud currently provides public cloud computing services in five data centers in China and in Hong Kong, and earlier this year launched its first overseas data center in Silicon Valley. Part of this new investment will be used to set up a global network of Alibaba Cloud cloud computing centers in the Middle East, Singapore, Japan and Europe.
The additional funding also underpins Alibaba Cloud's vision of a comprehensive cloud ecosystem that ensures businesses can be powered by cloud computing, with peace of mind, from day one of their operations. One initiative is the international Marketplace Alliance Program, which is designed to provide global users with one-stop cloud services and contribute to the worldwide development of cloud computing. The first wave of alliance partners – Intel, Singtel, Dubai-based Meraas, Equinix, PCCW, LINKBYNET, and Hong Kong-based Towngas – cover North America, Asia, Europe, and the Middle East.
Strategic Collaboration with Yonyou Software Co. Ltd
Alibaba Cloud and Yonyou Software Co. Ltd (Yonyou), the largest software vendor in China and the largest enterprise independent software vendor in the Asia Pacific region, also announced a strategic collaboration today that will expand business opportunities for both parties and help forward-thinking businesses in the fields of cloud computing, big data, digital marketing and e-commerce. Alibaba Cloud will also assist Yonyou on its journey to the cloud and big data.
Through this partnership Alibaba Cloud can further tap into the enterprise market and deliver a more comprehensive set of services to meet business needs, addressing domestic and international enterprise challenges more quickly. The cooperation will also allow Yonyou to leverage on the extensive resources that Alibaba Group has in place around the world to further grow its enterprise software business.
"Cloud computing will become fundamental infrastructure for new economic development. Alibaba Cloud, together with Yonyou, will bring comprehensive cloud computing solutions to empower more enterprises, drive the development of supply chains, enable cloud consumer marketing, and bring disruptive transformation to the industry," said Simon Hu, President, Alibaba Cloud.
About Alibaba Group
Alibaba Group's mission is to make it easy to do business anywhere. The company is the largest online and mobile commerce company in the world in terms of gross merchandise volume. Founded in 1999, the company provides the fundamental technology infrastructure and marketing reach to help businesses leverage the power of the Internet to establish an online presence and conduct commerce with hundreds of millions of consumers and other businesses.
Alibaba Group's major businesses include:
- Taobao Marketplace (www.taobao.com), China's largest online shopping destination
- Tmall.com (www.tmall.com), China's largest third-party platform for brands and retailers
- Juhuasuan (www.juhuasuan.com), China's most popular online group buying marketplace
- Alitrip (www.alitrip.com), a leading online travel booking platform
- AliExpress (www.aliexpress.com), a global online marketplace for consumers to buy directly from China
- Alibaba.com (www.alibaba.com), China's largest global online wholesale platform for small businesses
- 1688.com (www.1688.com), a leading online wholesale marketplace in China
- Alibaba Cloud (www.alibabacloud.com), a provider of cloud computing services to businesses and entrepreneurs
About Alibaba Cloud
Established in September 2009, Alibaba Cloud develops highly scalable cloud computing and data management services providing large and small businesses, financial institutions, governments and other organizations with flexible, cost-effective solutions to meet their networking and information needs. A business of Alibaba Group, one of the world's largest e-commerce companies, Alibaba Cloud operates the network that powers Alibaba Group's extensive online and mobile commerce ecosystem and sells a comprehensive suite of cloud computing services to support sellers and other third-party entities participating in this ecosystem. For more information, please visit here.