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Alibaba to open datacentre in Australia

Alibaba Cloud will open a datacentre in Sydney by the end of 2016 as part of its global expansion

The cloud services arm of Chinese e-commerce giant Alibaba is adding Australia to its datacentre footprint, with a facility set to open in Sydney by the end of 2016.

Australian organisations will be able to locally access Alibaba Cloud’s services, including cloud data storage and processing, enterprise middleware and cloud security services.

Alibaba Cloud, previously known as Aliyun, will have a team focused on building a cloud ecosystem with local technology companies in Australia.

The Sydney datacentre is one of four the company is opening across the world before the end of the year, with others in Dubai, Europe and Japan.

“The four new datacenters will further expand Alibaba Cloud’s global ecosystem and footprint, allowing us to meet the increasing demand for secure and scalable cloud computing services from businesses and industries worldwide,” said Ethan Yu, vice-president of Alibaba Group and general manager of Alibaba Cloud Global.

“The true potential of data-driven digital transformation will be seen through globalisation and the opportunities brought by the new global economy will become a reality.”

Australian organisations might welcome competition in the cloud infrastructure market after Amazon Web Services’ (AWS’) datacentre in Sydney was unavailable for up to 10 hours for some customers after power was cut during a storm.

This demonstrated that even the world’s largest cloud computing platforms are vulnerable to periodic failure, which means enterprise cloud users must still consider business continuity planning – particularly for mission-critical applications.

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Now is also a good time for cloud competition in Australia. According to research from Computer Weekly’s parent company TechTarget, the majority of IT decision makers in Australia and New Zealand (ANZ) are increasing their spending on cloud services.

A total of 59% of ANZ-based respondents to the global survey of IT decision makers said their cloud computing budget would be higher over the next 12 months. This compared with 38% who said the software budget would increase, 35% who expect bigger IT staffing budgets and 28% who expect to have more money for hardware.

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