Aliyun, Alibaba's cloud computing business, has announced the opening of its first overseas data center in Silicon Valley, signifying an important move to serve clients globally. The center will initially target Chinese enterprises based in the United States with the plan to gradually expand its products and services to international clients in the second half of this year. Aliyun has existing data centers in Hangzhou, Qingdao, Beijing, Shenzhen, and Hong Kong.
The Silicon Valley data center initially will provide a variety of cloud computing services that are expected to attract overseas Chinese businesses as they develop various kinds of applications. U.S. businesses will also be sought as Aliyun learns more about the needs of overseas companies.
"Aliyun offers users top-notch cloud computing products and services at competitive prices. Now Aliyun hopes to meet the needs of Chinese enterprises in the United States, and the ultimate objective of Aliyun is to bring cost-efficient and cutting-edge cloud computing services to benefit more clients outside China to boost their business development," said Ethan Sicheng Yu, vice president of Aliyun.
During Alibaba Group's 11.11 Shopping Festival, Aliyun handled peak order creation volumes of 80,000 orders per second. The high volume of data processed and the stability of the system during the Shopping Festival underscores the reliability of Aliyun's network. Aliyun also provides a high level of data security. An Aliyun cloud security service called YunDun last year successfully fended off a hacker attack on a Chinese gaming app company that is believed to be the largest DDoS (Distributed Denial of Service) attack ever recorded on the mainland. Occurring on Dec. 20, this incident lasted 14 hours and peak attacking traffic reached 453.8 gigabytes per second. Aliyun's customers range from start-ups to established corporations in digital entertainment, consumer electronics, financial services and mobile communications space. As of June 30, 2014, over 1.4 million customers were using Aliyun services directly or indirectly through independent software vendors. According to a report from IDC, Aliyun is the largest IaaS (Infrastructure-as-a-Service) provider in China with a 22.8% market share in the first half of 2014.
A survey from North Bridge shows that 75% of the companies in America use some form of cloud services. In 2014, the global cloud computing industry is predicted to be worth more than $150 billion.