Alibaba has opened its first data center in the U.S. The data center located in Silicon Valley will be run by Aliyun, Alibaba’s cloud computing division.
The center will initially target Chinese enterprises based in the U.S. and will expand its products and services to international clients later in the second half of the year.
Alibaba has more than 1.4 million enterprise customers for its cloud services over five data centers in Hangzhou, Qingdao, Beijing, Shenzhen and Hong Kong and is the largest Infrastructure as a Service provider in China with 22.8 percent market share in the first half of 2014, according to IDC.
Aliyun provides a high level of data security. An Aliyun cloud security service called YunDun claims to have last year fended off a hacker attack on a Chinese gaming application company that is believed to be the largest DDoS (Distributed Denial of Service) attack ever recorded on the mainland.
Its customers range from start-ups to established corporations in digital entertainment, consumer electronics, financial services and mobile communications space.
Aliyun will give competition to Amazon Web Services.
“Aliyun hopes to meet the needs of Chinese enterprises in the United States, and the objective of Aliyun is to bring cost effective and better cloud computing services to benefit more clients outside China to boost their business development,” said Ethan Sicheng Yu, vice president of Aliyun.
A survey from North Bridge shows that 75 percent of the companies in the US use some form of cloud services. In 2014, the global cloud computing industry is predicted to be worth more than $150 billion.