Delivered by IT Pro
Chinese e-commerce giant Alibaba's cloud services division has emerged as a company to watch in the U.S. IaaS market, according to Gartner's latest IaaS Magic Quadrant report.
Amazon Web Services maintains a commanding lead, followed by Microsoft and Google, while Alibaba Cloud ranks fourth in terms of ability to execute.
This is the first time that Alibaba Cloud has been named in the Magic Quadrant for Cloud IaaS. CNBC.
Like Amazon, Alibaba's primary business is e-commerce. According to a recent report: BloombergAlibaba's e-commerce business accounts for more than 82% of its sales, but its cloud business has grown nearly twice as fast as its core business, reaching nearly $1 billion last year from $63 million in 2012.
Alibaba launched its cloud in the United States last year and has been building more data centers to scale its infrastructure. Opening data centers in India and Indonesia by March 31, 2018.
According to Gartner, Alibaba's international services do not have the same features or performance levels as those offered in China, which could harm its reputation and growth prospects in the U.S. Additionally, the company “has little unique differentiation compared to other hyperscale providers” and has “taken much inspiration from competitors in developing its service capabilities and branding.”
Gartner also said U.S. customers may be hesitant to choose Alibaba because it is a Chinese company. Controversial legislation such as the Cybersecurity ActIt came into effect this month.
Gartner said AWS is most often used for strategic deployments across an organization, while Microsoft is seen as a more strategic enterprise cloud partner. ZDNetOn the other hand, Google is a good option for cloud-native companies.
According to an April report from Synergy Research, in the first quarter of 2017, Microsoft, Google and Alibaba Annual growth rate exceeds 80 percent.
This article was originally published on IT Pro.
