Tata Communications drops 3% after forming partnership with Alibaba Cloud

NEW DELHI: Shares of Tata Communications fell 3 per cent in Monday’s trade even as the company on Saturday said that it has partnered with Alibaba Cloud, the cloud computing arm of Alibaba Group, to offer customers from over 150 countries, including India, to connect to Alibaba Cloud’s ExpressConnect via Tata Communications’ IZO™ Private Connect service.

The company made the announcement to stock exchanges on Saturday.

Following the announcement, the stock declined 3.05 per cent to hit a low of Rs 743.05.

In a press release, the company said that the partnership between Alibaba Cloud and Tata Communications will assist both the companies to become digital transformation partners for their customers, empowering them to expand to new geographies, boost productivity, safeguard their businesses against threats, and take customer experience to the next level.

“We look forward to offering more global organisations connectivity to Alibaba Cloud and to strengthening our presence in the Chinese market,” said Genius Wong, President, Global Network, Cloud and Data Center Services at Tata Communications.