China giant Alibaba launches data center in Hong KongMay 12, 2014 - 11:20 AMT PanARMENIAN.Net - Just days after filing for an initial public offering in the U.S., Chinese e-commerce giant Alibaba Group Holding is beefing up one of its lesser-known businesses: helping online merchants manage their ever-increasing data, the Wall Street Journal reports. Alibaba, which runs online marketplaces hosting millions of merchants, said it launched a data center in Hong Kong on Monday, May 12, as a first major step to expand its fledgling cloud-computing business outside mainland China. Revenue at its cloud-computing unit is tiny when compared with that of Alibaba’s mainstay e-commerce operations, which generate revenue through advertising and commission fees. However, as transactions on Alibaba’s sites grow rapidly, analysts say that data management services could become a major business for the company going forward. Alibaba created its cloud-computing business unit in 2009 to respond to demand from sellers using the company’s shopping sites. Alibaba’s IPO filing last week showed that revenue from the cloud business stood at $90 million, accounting for only 1.4% of its total revenue, in the last nine months of 2013. The launch of the Hong Kong data center also comes as Alibaba’s two main shopping sites–Taobao and Tmall– have been trying to expand outside mainland China, beginning with Hong Kong, Taiwan and Singapore. According to Alibaba’s website, the company has data centers in three mainland Chinese cities: Hangzhou, Qingdao and Beijing, the Journal says. Investors in the U.S. and globally are watching Alibaba’s every move to decide whether to subscribe for shares in the IPO. Some analysts estimate the listing could value Alibaba between $150 billion and $250 billion, making it one of the most valuable technology companies in the world. Alibaba said it built the new data center in Hong Kong in cooperation with a unit of Towngas, a Hong Kong gas company. Alibaba didn’t say how much it spent on the facility. Related links: Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Armenia-Azerbaijan: Turkey wants deal after “positive developments” Turkey hopes “positive developments” in negotiations between Armenia and Azerbaijan will lead to an agreement. Police try to impede Armenian Church head’s access to war memorial Police tried to stop the supreme head of the Armenian Apostolic Church, Catholicos Karekin II, from visiting a war memorial. Greece says ready to help as Armenia fights flooding consequences Greece is ready to assist Armenia in combatting the consequences of deadly floods in the country’s north. “He will leave”: Protest leader no longer demands meeting with Pashinyan Archbishop Bagrat Galstanyan no longer demands a meeting with Armenian Prime Minister Nikol Pashinyan. |