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Alibaba expands its presence of cloud services in Europe

Alibaba

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Chinese giant Alibaba expands its presence of cloud services in Europe, introducing a new product that aims to take away the dominance of Microsoft and Amazon. The Chinese technology giant has released cloud products linked to artificial intelligence and large volumes of data in Europe after they are already in other markets, including in China.
One of the products allows users to capture products and the artificial intelligence finds them on the e-commerce site. Another product aims to find vulnerabilities in network security.
Alibaba Cloud has been launched in Europe since 2016, and last year has offered other products focused on artificial intelligence and data. But so far, Alibaba’s efforts have focused on serving Chinese customers operating in Europe. Now it is also trying to attract European companies.
Currently, Alibaba has only one data center in Europe and it is located in Frankfurt. It serves the entire region. At the World Mobile Congress, the company announced plans to open new data centers on the continent but did not reveal any more information.
The cloud business is Alibaba’s fastest-growing unit, with revenue in the fourth quarter rising by 104% yoy to 3.6 billion CNY (570.6 million USD). This division enjoys over 1 million paid subscribers, but the cloud currently accounts for only 4% of the Chinese giant’s total revenue.
Alibaba is still lagging behind Microsoft and Amazon globally. Amazon Web Services generated revenue of 5.11 billion USD in the fourth quarter of last year.
Alibaba recognizes that the company’s European cloud service business in Europe is still small.