Alibaba Group Holding Limited (NYSE/BABA) announced plans to expand its cloud service overseas through partnering with global companies. It also agreed to auction off bad debt for China Cinda Asset Management on its Taobao platform.
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Aliyun Partnering with Intel
Aliyun, the cloud division of Alibaba, announced that it is launching a global partnership program called the Marketplace Alliance Program (MAP). (Source: Alizila, June 8, 2015.)
Aliyun is currently China’s largest cloud computing company, serving more than 1.4 million customers. It has also been expanding overseas. In March 2015, the company announced it would open a data center in Silicon Valley. Just last month, Aliyun entered the Middle Eastern market in a joint venture with state-owned Dubai holding company Meraas.
The partnership announced today includes high-profile companies like Intel Corporation (NASDAQ/INTC) and Singapore Telecommunications Limited (SGX/Z74), more commonly known as Singtel. Aliyun plans to push its own services onto existing data centers built by these partner companies.
The Marketplace Alliance Program would allow Aliyun to collaborate with local partners in regions that it plans to expand into. Expertise from these partners will help Aliyun localize its cloud offerings.
Partnership under the Marketplace Alliance Program is expanding. According to Ethan Yu, Aliyun’s vice president, the company “will continue to bring more partners online to grow [their] cloud computing ecosystem.”
Selling Bad Debt on Its E-Commerce Platform
Recently, Alibaba entered into an agreement with China Cinda Asset Management to auction 4.0 billion yuan (US$645 million) worth of bad debt on the e-commerce platform Taobao. (Source: Caixin, June 1, 2015.)
China Cinda Asset Management was established in 1999. It was one of the four asset management firms built to take over non-performing assets from state-owned banks.
During the recent economic downturn, the asset management company bought a huge amount of bad assets. It paid low prices for them, but the assets turned out to be hard to sell. The company hopes that Alibaba’s customer-to-customer online platform can help find buyers for these assets.
The auctions are scheduled to start on June 20, 2015. Individuals, companies, and organizations can all bid on these assets.