Aryaka, Alibaba, and the globalization of SD-WAN

Incredibly interesting news was released late yesterday. Alibaba Cloud announced a partnership with Aryaka to deliver Global Managed SD-WAN. This announcement has impacts for China and the globe.

Global deployments have been a particularly high growth category for specific SD-WAN providers like Masergy and Aryaka. Asia Pacific and China (APAC) has been a particularly strong area for Alibaba and the partnership between these organizations could allow Alibaba to extend their reach outside of the region.

SD-WAN International Symbiosis

This partnership will allow Alibaba Cloud Customers to extend their reach both within the country and around the world. They state that this services integrates SLA-driven connectivity with application acceleration, security, optimization and global orchestration. Additionally Aryaka will allow global end-to-end access into China.

Long story short, Aryaka is the path to China through the Alibaba Cloud.

“Alibaba Cloud is the #1 public cloud provider in Asia Pacific and China. We are thrilled that Alibaba Cloud has partnered with Aryaka as one of its global networking partners,” said Matt Carter, CEO of Aryaka. “The combination of the world’s best managed SD-WAN provider and Alibaba Cloud will help deliver a truly Cloud-First WAN to enterprises, modernizing their WANs.”

Alibaba Cloud is a powerhouse

“As part of the Alibaba Cloud Partner Network (ACPN) in China, we are proud and excited to be part of the Alibaba Cloud-Aryaka global partnership in delivering a true global SD-WAN solution to customers. Chinese companies with global ambitions can now enjoy best-in-class Alibaba Cloud infrastructure & Aryaka SD-WAN technology at their fingertips,” said Jay Joon Tjun Weing, Netbank SDWAN CTO.

Alibaba Cloud in China

41.7%

Alibaba was the largest Chinese public cloud provider in 2019. 

Alibaba Cloud in APAC

28.2%

Alibaba Cloud in the APAC region

“By combining Aryaka’s technology with Alibaba Cloud’s robust network infrastructure, customers will be able to achieve unparalleled application performance through this partnership in China and globally,” said Selina Yuan, President of International Business at Alibaba Cloud Intelligence.

Questions Remain about this partnership

On paper, this partnership makes great sense.  Both companies compliment eachother with their innovative agendas and reach. The bigger concern short term and long term is the growing global apprehension around Chinese led technology providers, specifically in the networking and communications industries.  Huawei is the most obvious example. If the current administration implements additional sanctions or regulation, this could backfire.

Additionally, it will be interesting to watch this develop in terms of immediate revenue impact on Aryaka and how that will impact their rumored IPO later this year.