Alibaba opens second U.S. data center in $1 billion cloud push

Chinese cloud computing companies will most likely need to compete for local business to reach scale, said Steven Lu, a Shanghai-based partner with Bain & Company. "When Chinese companies go overseas, following the diaspora of Chinese companies might be a good first step," Lu said. "Yet the majority of cloud customers overseas are local, so Chinese companies have to penetrate the local market if they want to really grow."