Xiaomi Global Expansion: Moving Data Centers Out Of China
Xiaomi is growing out of its shell. It has already started making some of its devices, unfortunately not always the latest ones, available in other countries, hoping to replicate the same wild success it enjoys in China. But in order to scale better to an international audience, especially as far as its services are concerned, the company is now also relocating some of its data away from Beijing and into other territories, some of them in the US. But is that really the only reason for this move?
Hugo Barra, the former Google exec who now heads Xiaomi's international thrust, shares on Google+ the company's efforts to provide better service to its new international customers by moving some of their data and services to more strategic locations. For example, e-commerce data will be transferred to Amazon AWS data centers in California and Singapore while MIUI services are being located to servers, also running Amazon AWS, in Oregon and Singapore. For countries were Xiaomi has established a base but where Amazon's AWS isn't available, like in India and Brazil, the company will instead be going with local providers.
Though relocating to different places, the one common theme is that they are all moving away from the company's current data centers all hosted in China. While quality of service is Barra's focus, others are reading some other messages into the move. In fact, even Barra might have hinted at it himself when he mentioned complying with local data protection laws. The move away from China might be equated with a move to protect user data from that government's data collection activities.
China has recently been seen as spying on people, its own citizens or foreigners, using mobile phone companies as either sources or bait, whether they like it or not. That latter is a sore point for many Chinese companies with a presence in international markets, as some, like Huawei and Xiaomi, have been accused of being tools of the Chinese government to spy on foreign nationals and businesses. This relocation of data centers and services might be seen as Xiaomi's move to distance itself from the issue as well as protect its own faithful flock.
Some might argue that moving majority of that data to the US might be trading one spying government for another, though there are definitely arguments that will favor this move. What remains to be seen now is whether this will in anyway irk the Chinese government enough to put the company inside their crosshairs and how that will affect Xiaomi's business at home.
SOURCE: +Hugo Barra