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Alibaba Plans to Partner With BT Group to Expand in Europe

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Reportedly, Alibaba’s BABA cloud computing arm is planning to join forces with BT Group Plc in a bid to bolster its footprints in the European region.

The deal will also aid cloud computing strength and big data skills of BT Group.

Per Bloomberg, the deal is likely to be similar in nature to Alibaba’s deal with Vodafone Group Plc per which the latter has become the authorized reseller of Alibaba Cloud in Germany.

If the latest plan materializes, Alibaba Cloud will gain momentum in Europe’s cloud market with its highly secured cloud platform and the popularity of BT Group. Further, this will aid the company’s aim of global expansion.

Strengthening Footprints in Europe

Alibaba’s strong focus toward expanding cloud business in the European region with the help of strategic partnerships and partner programs will continue aid its adoption rate in this particular region.

Recently, the company has unveiled EMEA Ecosystem Partner Program in an attempt to enhance its cloud services offerings in the region. This will also aid in strengthening the connection between Alibaba Cloud customers and the regional partners.

Moreover, the company has collaborated with Bollore Group, a France-based transportation company. Per the partnership agreement, Alibaba’s cloud computing arm, Cainiao Smart Logistics Network and Bollore’s logistics business, Blue Solutions will work together in various global projects, especially in Europe and Africa.

Bollore will utilize Alibaba’s services, content delivery network, big data, artificial intelligence and security solutions available for the businesses it owns across various industries.

Consequently, this will increase the adoption of Alibaba’s services, driving its top-line growth.

Alibaba Group Holding Limited Revenue (TTM)

Alibaba Group Holding Limited Revenue (TTM) | Alibaba Group Holding Limited Quote

Intensifying Competition

The latest move will aid Alibaba in reinforcing its competitive position in the rapidly growing cloud market against the likes of Amazon AMZN, Microsoft MSFT and Alphabet’s GOOGL Google.

BT’s Global Services unit is already in partnership with Amazon Web Services (“AWS”), Microsoft Azure and Cisco Systems. Further, Amazon has collaborated with Spain’s Telefonica SA.

Additionally, Microsoft has recently announced the general availability of Azure in Europe. Notably, AWS has expanded its U.K. based datacenter to offer more options of availability zones to customers.

Further, Google has recently expanded its Cloud platform region in the Netherlands. Also, company announced an investment of €150 million for the expansion of its data center based in Dublin. Additionally, Google is planning to launch its cloud services in Switzerland.

Alibaba’s partnership with Vodafone has also helped it to co-locate its first European data center in Frankfurt.

Consequently, the company’s continued efforts in expanding beyond China will aid it in improving its global market position. However, increasing competition from the U.S tech giants which operate globally remains a major concern.

Currently, Alibaba carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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