Cloud business is being dominated by established giants that include Microsoft and Amazon. To head up shoulder-to-shoulder on a business note, Daniel Zhang, CEO of Alibaba had recently mentioned that they have plans to make their business totally powered by cloud. Also, he is of the point of view that cloud computing would be taken up as the main business for the company in the future. Alibaba is seeing a huge growth with regards to its cloud computing business over the last few quarters which is also attributed towards its international business expansion.

The cloud business of the Chinese e-commerce giant has been expanding at a significant pace and also saw a revenue growth of over $800 million in the quarter ended on Septembver30, a 90% Y-O-Y growth. Cloud accounted for nearly 7% of the total revenues in quarter versus 5% in the same timeframe year before, focusing on indicating how their business is concentrated but still holds considerably more share.

Expansion Strategy of Alibaba

Alibaba has already firmed up on expanding its cloud business across new territories but outside China, which was more than two years ago. The company has opened up new data centers in Europe and Asia along with others. Recently, the company opened up a novel data center in U.K., which is country where Amazon, Alibaba’s rival holds a strong presence. Alibaba is taking up cloud computing in a way that it would help in diversifying their business beyond retail. With the launch of “New Retail” by Alibaba, the company is gearing up to combine its entire online properties with the brick-and-mortar supplies. This also includes the company’s food delivery and logistics network.

CSS Insights’ senior vice president, Martin Garner had mentioned that Alibaba has been making heavy investments at a significant rate for developing its cloud services. The company has firmed up itself in a way that it is considered as one amongst the hyperscale cloud players of the world, making it up for neck-to-neck competition with Google, Microsoft and Amazon. Alibaba is trying to expand its global footprint with innovations and advancements in its portfolio of cloud services, at a notable pace. Also, the company is experiencing a strong push in the field of IoT (Internet of Things). In the long run, the company will also design on its new AI (artificial intelligence) chips.

Cloud-based services are seen as being pervasive for some associations because of which, in today’s modern world, it is hard to envision using applications as well as innovation foundation workings without the cloud. Business world in the long run will be seen significantly increasing the adoption of cloud computing as it helps in enhancing efficiency, improves cash flow and also offers various other benefits such as flexibility, disaster recovery, automatic software update, capital-expenditure free, increased collaboration, work from anywhere, document control, security, competitiveness and most of all, is environment friendly.

Published by Sudip Saha

Sudip Saha is one of the leading tech consultants in APAC, having served at key positions in leading IT consulting firms. He has extensively written about the commercial viability and impact of next-generation technologies, most notably AI, IoT, and Big Data. Sudip’s forte lies in offering a nuanced analysis on the key developments in the tech landscape. A reputed thought-leader, his views have been published in leading publications, including CIO, ZD Net, Economic Times, and The Economist

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