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Alibaba Announces AliCloud CDN Commercial Services

Shenzhen Economic Daily, 3/06/14

Alibaba Cloud Computing (AliCloud), a subsidiary of Chinese e-commerce conglomerate Alibaba Group, yesterday announced the opening of its content delivery network (CDN) services for commercial operation, making the services available to enterprise clients both in China and overseas. According to Alibaba, the company's CDN services were originally developed to support large traffic loads on its own B2C e-commerce site TMall and C2C e-commerce site Taobao. In addition to domestic server farms, AliCloud now also operates nodes in Japan, Singapore, Hong Kong, and other locations.

Prior to AliCloud's entry into the CDN market, CDN services in China have been primarily provided by two companies: Shanghai-based Wangsu Science & Technology (ChinaNetCenter) (300017.SZ) and Beijing-based ChinaCache (Nasdaq: CCIH). ChinaNetCenter is the China partner of Amazon Web Services (AWS), the enterprise cloud services subsidiary of US internet giant Amazon.

According to AliCloud's website, CDN service fees will be calculated according to a tiered pricing structure:

1. 500GB/month: RMB 0.45/GB;

2. 500GB - 2TB/month: RMB 0.42/GB;

3. 2TB - 10TB/month: RMB 0.39/GB;

4. 10TB - 50TB/month: RMB 0.36/GB;

5. Over 50TB/month: RMB 0.33/GB.

Client accounts will be charged for data use on an hourly basis, with data traffic quantities calculated according to the actual traffic in each calendar month.

Editor's Note: For more background on this topic, please see "ChinaNetCenter Announces Amazon Cloud Services Partnership" MD 1/06/14 issue.

Keywords: telecom CDN ChinaCache cloud computing web services ChinaNetCenter 300017.SZ AliCloud Alibaba Group CCIH

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