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— Blog

Asia-Pacific cloud providers turn their sights on the world

April 8, 2015
By Jihann Pedersen, Marketing Director , Asia Pacific

The rapid adoption of cloud services by organisations in the Asia-Pacific region has traditionally been driven by large US-based cloud operators entering the market. Yet this tide now appears to be turning.

While cloud giants such as Amazon and Microsoft have invested heavily in infrastructure and services in this region, there are increasing signs that Asia-Pacific-based operators are now turning their attention to other parts of the world.

As an example, Alibaba’s cloud division Aliyun recently announced it is establishing a new data centre in Silicon Valley. The data centre will be the first for the company outside China and is the start of an expansion programme that will extend into Europe later in the year.

Aliyun plans to eventually go head to head with the US cloud giants and offer a range of services to local customers. It will also offer capacity for Chinese firms looking to increase their activity in the US.

The investment means Aliyun may also be able to offer support for US firms looking to get a foothold in the Chinese market. With local market knowledge and a network of data centres already in place throughout China, it would appear to have a unique advantage over its US rivals.

Digital Realty is enabling the expansion of other Asia-Pacific cloud players into new markets around the region and beyond. As a result of this trend, the Asia-Pacific cloud companies that are now extending their capabilities into other regions will be well placed to take advantage of potential future opportunities. Instead of relying on this region as their only source of growth, they can compete with other providers in larger international markets.

Keeping critical data close for local cloud operations helps to ensure low network latency and, therefore, improved user experiences. When trying to compete with established local cloud players, a new cloud computing entrant should ensure their systems and online presence is as responsive as possible. A local data centre is an important component in achieving this.

Having local cloud deployments also allow reliable connexions to be established with new customers and partners. Rather than needing to rely on long-distance network links, data exchanges and transactions can be handled within the territory. This removes any performance lag and ensures security and reliability.

By enabling the data centre projects of not only cloud companies but of other enterprises around the world, we have acquired unique insights into the business and regulatory processes of key markets. Our global teams also suggest the most agile data centre design based on customers’ unique local needs. These insights, coupled with our robust global platform and connectivity-rich data centres, can assist cloud companies and other organisations following a similar expansion path. When you’re establishing a footprint in a new country, we can become a partner with valuable local knowledge.

It’s clearly an exciting time for Asian companies as they grow to take advantage of global opportunities. Ensuring your data centre infrastructure can support this growth is an important ingredient in future success.