Amazon.com, Inc. (NASDAQ:AMZN) has not let the cat out of its bag for nine long years; finally, it broke lose the net earnings for its Web Services. On Thursday, Amazon conveyed that it has carried out net sales worth $1.57 billion, in a bid to suggest that it has been doing great in cloud computing and is better placed than the competitors. However, it is facing a strong competition from a familiar contender, Alibaba Group Holding Ltd (NYSE:BABA).
Amazon Popular Across The World
Amazon caters to 28% of the net worldwide cloud infrastructure services market. The company is eager to expand its base further. Over the past years, AMZN has plunked down a myriad of gigantic data centers. These data centers eased and hastened the access to data and helped in rendering services to consumers outside the US, feasibly.
AMZN Faces Stiff Competition From BABA
The company has pitched in with China being one of the prime targets. It opened a data center near the peripheries of Beijing in 2014. Moreover, AMZN also has its presence felt in Ireland, Singapore, and Brazil. Across the globe, it hasn’t faced substantial local competition; however, China stands out to be different, and this is owing to BABA’s cloud computing venture— Aliyun! The parlance is set for a major digital battle, as Amazon (with a base of a million customers) eyes the lucrative Chinese market, whereas, Aliyun eyes to expand across the world!
Alibaba Partners With Intel
Alibaba has partnered with Intel Corporation (NASDAQ:INTC) for custom-made chips. The chips designed are products of holistic experimentations to deliver the best low-power processors at the best cost possible. The idea is to save on customers’ power bills and to hanker after a non-standard architecture. Amazon doesn’t stand fit in this regard.
Battle Looms Near
Alibaba has five data-hubs in Asia, at Hong Kong, Qingdao, Shenzhen, Hangzhou and Beijing. The company officials also have nexus with the Chinese Government, and hence can easily embark on strategic agreements. As Aliyun grows, an imminent battle looms with Amazon– both on the Chinese territory and the global front.
