Verizon has extended its Secure Cloud Interconnect service to Alibaba Cloud -- a strategic win for the fast-growing, China-based cloud services provider. The interconnect service gives customers a private, secure link to Alibaba's cloud -- which is striving to compete head-on against Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) worldwide.
Alibaba Cloud services revenues are nearing a $4 billion annual run rate, ChannelE2E reported in January 2019. The company is gaining momentum with enterprise customers, Alibaba indicated. Moreover, the company launched 678 new cloud-related features during its most recent quarter — addressing such areas as data intelligence, AI applications, security and enterprise solutions.
Still, Alibaba Cloud faces geopolitical challenges as it strives to expand into Europe and the United States. China-based companies like Huawei Technologies and ZTE have face bans and pushback in various countries -- some of which allege that the companies either steal intellectual property or potentially spy for China's government. Alibaba Cloud has not faced such claims, but the company's China-based heritage has triggered close scrutiny in the western world.
For its part, Verizon's Secure Cloud Interconnect supports Alibaba Cloud in Singapore and Hong Kong. Verizon did not indicate whether it will expand the interconnect service to more Alibaba Cloud regions.
Alibaba Cloud has been working with a select group of service providers to push into Europe. The company has not made major moves on U.S. soil, though the firm certainly does support U.S. companies that have branch offices worldwide.
