Another Chinese company is taking direct aim at Amazon Web Services and Microsoft Azure by announcing plans to launch cloud computing services in Europe and the United States
Xunlei Ltd will become the latest Chinese tech firm to expand into lucrative markets in America and Europe. The company launched its cloud service in August called OneCloud, which works in part by having users contribute idle bandwidth and storage capacity.
Xunlei’s chief executive told The Associated Press that foreign expansion plans will begin in the coming months with markets closer to China.
“Hopefully we will start to do business in the United States market and European market in the first half of next year,” CEO Lei Chen said.
Demand for cloud services in China is booming. But the Chinese market is dominated by local companies like Alibaba due in part to strict local laws for foreign cloud providers. For example, Amazon in November sold the hardware for its cloud business in China to a local partner but said it retains ownership of the intellectual property behind it. AWS has since announced plans to expand in China with the opening of a second cloud region.
Xunlei says it has received more than 18 million orders for the hardware to operate OneCloud in China and that it’s model of using customer’s bandwidth will give it a competitive edge
It “will bring us capacity to provide cloud computing at a very low cost, perhaps one-third of the cost of Amazon,” Chen told The AP.