Alibaba has been known to be the largest Chinese e-commerce organization for all these years. However, it is poised to present its new avatar in the form of cloud computing arm of the parent company. Alibaba Cloud has cleared decks for entering Indian cloud market, which is already dominated by its western counterparts.
Indian Cloud Computing Scenario
India has embraced cloud computing in a big way due to entry of giant cloud providers including Google, Microsoft Azure, and Amazon to name a few. It is hardly surprising that Alibaba Cloud has set its eyes on this large and lucrative market, which is second only to China in the Asian continent.
Indian enterprises have always been associated with futuristic vision and innovative approach when it comes to adoption of innovative technologies. Indian enterprises have experienced digital transformation, thanks to cloud computing providers that have empowered wide spectrum of industrial and commercial sectors.
Alibaba has chosen Mumbai as its first data center location due to the fact that it is the commercial capital of India and home to a huge number of organizations in terms of their head quarters. Alibaba proposes to help small enterprises and startups set their foot in the amazing world of cloud computing.
Reliance communications, a leading conglomerate with remarkable presence in digital sector, communications, retail, and media has offered to get associated with Alibaba through one of its subsidiaries, Global Cloud Exchange. The Indian data center of Alibaba has been designed to handle multiple aspects of cloud computing including content distribution, storage, compute power, big data, analytics, and networking to name a few.
Advantage of Local Data Center Footprint
Millions of Indian enterprises will be able to leverage Alibaba Cloud’s expertise as these begin their voyage to the final destination of cloud adoption. These companies will also be able to seek valuable support through local cloud advisors that will be appointed by Alibaba to make sure that the clients are backed by of service planning and post sales service so that the cloud transition is free from hassles.
Alibaba Cloud has already been providing significant support to Indian clients and the announcement of new Mumbai data center comes only as a renewal of commitment to progress of Indian businesses. Indian enterprises are searching for a trusted cloud associate that will help them explore local as well as overseas business opportunities.
Presence of a locally operating data center will help Alibaba Cloud gain deeper insights into the specific needs of Indian organizations so that bespoke cloud solutions can be designed. On the other hand, all existing Indian customers of Alibaba Cloud will be able to get much better support with a data center on Indian soil.
Market Strategies for Larger Market Cap
The towering position of Amazon which commands more than one third of the global computing market that also includes some of the big names such as Google and Microsoft leaves hardly any space for a new entrant. There is a big gap between Amazon and its closest rival in terms of market share.
Cloud computing continues to be a strong focus area of the top companies. This clearly implies that a new entrant will have to do proper homework before entering the arena. One can clearly understand the level of emphasis on cloud host server products by the leading global organizations by observing their activities closely.
Amazon Web Services have recorded a massive forty two percent growth in their financial reports. Although, the growth rate appears to be retarded a bit, it can be attributed to the large sales volumes. Secondly the per second calculation of resource consumption has armed Amazon as well as Microsoft to rope in more clients that need such pricing model to address extremely volatile use of containers.
Microsoft has overtaken AWS in terms of YoY growth which is currently reported to be ninety percent over the previous fiscal. Google is also not to be left behind in the race and has disclosed impressive earnings that have grown by forty percent. In the recently announced partnership with Cisco, Google has revealed its strategy for gaining greater level of competitiveness.
Prior to its plans of setting up datacenter facilities in Middle East, Amazon Web Services have been successful in strengthening data center footprint in India. Microsoft and Google are also rapidly expanding their cloud computing facilities outside US in locations such as Africa, and in many more countries.
According to the recent observations by a lading US research firm that deals in science and technology, Alibaba is positioned to be a dominant global player along with AWS, Microsoft, and Google.
Global market for public cloud providers is in the consolidation phase with a dominant role being played by Amazon Web Services. Alibaba will have to leverage all its digital might for establishing itself in the fiercely competitive market segment of public cloud. Considering its past record of successful ventures, Alibaba is definitely a force to reckon with.