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Alibaba to set up India data centre to take on Amazon

Chinese e-commerce giant Alibaba Group is poised to announce its India entry with a data centre. The Hangzhou-headquartered company, which is planning to enter the fledgling e-commerce market in India this year, probably through an acquisition, wants to set up a local data centre to better compete with its rivals. A similar strategy is being followed by other tech majors such as Microsoft and Amazon.

Says Sanchit Vir Gogia, Chief Analyst & CEO of Greyhound Research, an independent IT & Telecom Research & Advisory firm: “When they start on-boarding millions of sellers and suppliers on the platform, it is clear they will need a means to support that kind of data. It is less expensive compared to relying on a third-party data centre and also there are no issues of data theft.”

However, he felt that Alibaba would have difficulty competing with AWS in the cloud business as AWS has already captured market-share globally, with its overall revenues touching $6 billion.

Source: The Hindu Business Line

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