Alibaba wants to challenge Amazon Web Services in Europe through an alliance with BT’s IT services division
Alibaba Cloud, the world’s fourth largest provider of cloud infrastructure and related services, wants to conquer the European market and challenge Amazon. To conquer the market, Alibaba Group Holding is negotiating with BT Group for a partnership of cloud services.
An agreement between Alibaba and BT Group could be similar to Alibaba’s existing arrangement with Vodafone Group in Germany.
BT Group plc is a British multinational telecommunications holding company with head offices in London, United Kingdom
A BT spokeswoman confirmed by email that the British telecoms company is in talks with Alibaba Cloud, New York-listed Alibaba’s cloud computing arm.
Alibaba Cloud is now the fourth-biggest global provider of cloud infrastructure and related services, behind AWS, Microsoft Corp and Alphabet’s Google, according to a report last month by Synergy Research Group.
Europe has become key to Alibaba Cloud’s success outside China, with prospects in the US made murky by President Donald Trump’s America First agenda.
Alibaba started the German partnership with Vodafone in 2016
Alibaba’s first European data centre was placed in Frankfurt, Germany, allowing Vodafone to resell the Alibaba Cloud services such as archiving and data analysis.
In France, however, Alibaba Cloud has agreed to work with the transport and communications company Bollore in cloud computing, big data and artificial intelligence.
An agreement with Alibaba could strengthen BT’s cloud computing and big data skills as customers move more of their off-site IT capabilities to reduce costs.
The UK security agencies can examine every collaboration between Alibaba, the parent company of the South China Morning Post and the main custodian of Britain’s communication infrastructure.
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