Alibaba, the world’s largest ecommerce provider, has pumped over a $1 billion into its subsidiary, Aliya, a cloud services provider. This is perhaps one of the biggest moments in the global Cloud Wars that signals the entry of China into the main arena. Here is why this matters.
The cloud industry worldwide is being propelled into fast growth by tremendous demand for cloud computing services. Cloud, which is highly scalable and offers low investment and high computational capabilities to end users by eliminating the need to buy costly infrastructure and instead rent it from cloud providers, is now projected to be a $200 billion industry worldwide by 2020. This estimate may even get inflated as we get closer to 2020, given the fast growth rate of cloud.