Alibaba Invests 1 Billion Dollars Towards Growth

Alibaba Invests 1 Billion Dollars Towards Growth

Have you ever heard of the Chinese-based e-commerce known as Alibaba? Well, get ready to. They just invested one billion American dollars in a Cloud-based computing system. Apple, Amazon, Microsoft and Google all have stakes in Cloud software, making Alibaba the latest competitor to jump in on the juggernaut system. If you’re not familiar with Cloud, it’s a way of transporting data to and from your smartphones, computers, tablets, and just about anything else that has a wifi or data connection. It’s a relatively new system, only emerging in the last several years as a brilliant solution to the increasingly cord-based world of technology.

This latest bit of news of a new competitor is great news because it means conglomerates such as Apple and Amazon will have to compete for fair pricing. Alibaba reportedly is interested in supplying consumers with affordable prices to their services, something that Apple, Amazon and Google aren’t exactly known for being concerned over. Jillian D’Onfro of Business Insider points out that, “The funding will be used to expand Aliyun’s international presence, extend its alliance-based ecosystem, and to build new products that it can offer at lower costs, the company announced in a press release.” If this is true, then it’ll certainly be interesting to keep a watchful eye on the company as it manages to grow over time.

The Cloud system is pretty intricate and involves a lot of data information, hence the high figures in spending. Gillian Wong of the Wall Street Journal has announced that, “The e-commerce giant said part of the money will go to set up data centers in the Middle East, Japan and Europe.” Wong also mentions that Alibaba already has a data center in Silicon Valley in California. It’s always interesting to see how fast these companies can grow with a unique idea and spark of the imagination. Still, one billion dollars is a whole lot of money. A type of figure that most companies cannot compete with without knowing full-well their investment is to have a promising return.

What does Alibaba have up their sleeves to make them so confident in this venture? Well, unfortunately that’s something we’re going to have to wait a while to discover. Ideally, their cloud service will be released sometime next year, if not much sooner. You can’t rush these things, but you can get really excited over the very good news.

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