Alibaba Group Holing Ltd (NYSE:BABA) cloud computing unit Aliyun and Intel Corporation (NASDAQ:INTC) have entered a partnership dubbed as the ‘Marketplace Alliance program,’ which will focus on exploiting localized cloud services of Intel and other Alibaba partners to meet the regional needs of global developers.
Intel Ramping Cloud Support
Raejeanne Skillern, Intel cloud-service general manager said in a statement, Intel and Alibaba have been working together on optimizing the hardware and software technology across the data center for Alibaba’s unique workloads. And as a part of Aliyun’s Marketplace program, the chip maker will continue with the collaboration to promote joint technology solutions running on Intel Architecture.
Intel’s interest in Cloud and to become a market leader in the segment is not a hidden fact. The firm’s Altera deal is also partly concerned with optimizing cloud. The deal is aimed towards integrating the manufacturing process with Altera’s programmable chips that can be configured for specific functions.
The chip maker did acknowledge that the partnership with Altera will strengthen the future in cloud computing and the Internet of Things, in which chips are used in everyday objects such as sprinklers, thermostats and so on.
Smart Move From Alibaba
Along with Intel, Aliyun also collaborated with other major telecoms and Internet companies across the world. Other partners for Alibaba unit include PCCW of Hong Kong, Equinix of the United States, Singtel of Singapore, Meraas Holdings of Dubai and Linkbynet of France.
“The new Aliyun program is designed to bring our customers the best cloud computing solutions by partnering with some of the most respected technology brands in the world,” said Sicheng (Ethan) YU, vice president, Aliyun.
For Alibaba, these deals represent its strongest push outside China till date, positioning the Chinese firm in direct competition with names such as Amazon, Google and Microsoft. However, it is not Aliyun’s first foray outside local boundaries.
This year , Alibaba inaugurated a center in Silicon Valley, however, the latest partnerships indicate the intentions of the Chinese firm to expand globally without building costly data centers.
A report from IDC revealed that the public cloud spending will spike 25% in 2015 to reach $21 billion, and private Cloud IT infrastructure spending will rise 16% over the year to $12 billion. Together, this will sum to a total cloud spending of around $32 billion, an increase of 28% from 2014’s $26.4 billion. This presents a big opportunity for Intel and for Alibaba.