Alibaba is best known for its sprawling e-commerce empire, but like Amazon, the cloud service has been a big driver of its revenue in recent years.
Chinese cloud giant is ready to double its overseas reach and announce Today, a billion dollar investment is made in “Upgrading the Global Partner Ecosystem”. Alibaba Cloud is now The third largest public cloud service provider in the worldan achievement inseparable from the large network of local allies formed all over the world.
The company is constantly Recruit local partners To assume responsibilities such as sales, technical support and customer service. The company said the $1 billion initiative aims to “support technology innovation for partners and expand their market with Alibaba Cloud in the next three fiscal years.” The money will come in the form of financial and non-financial incentives, including financing, discounts and market entry initiatives.
Alibaba Cloud currently has about 11,000 partners around the world, including Salesforce, VMware, Fortinet, IBM and Neo4j.
Alibaba Cloud had a market share of 9.5% in 2021, lagging behind Microsoft (21%) and Amazon (39%), according to the market research firm. Gartner.
Cloud service, with a base in Hangzhou and an expanding footprint around the world, has become the cloud solution for many Chinese companies expanding overseas. But escalating national security tensions between China and the West have pushed some customers away from its cloud platform. In a bid to win over US regulators, TikTok has reportedly Moved from Alibaba Cloud And the Transfer all his US data to Oracle servers.
Even early-stage Chinese companies are joining the technological bifurcation. Over the past few months, several consumer-facing internet startups, including a social network and productivity tool, have told me to store all external user data on foreign cloud services just to avoid future regulatory scrutiny.
Alibaba Cloud recently suffered from slowing growth and the loss of one major cloud client, which industry watchers believe is ByteDance. As noted by the company in the file June earnings report:
Our cloud segment annual revenue growth reflects a recovery in growth of the offline industries, driven by the financial services, public services, and telecom industries, offset in part by a decline in revenue from the largest online customers who have progressively stopped using our services. Offshore cloud services for its international business due to non-product requirements, online education customers as well as lower demand from other customers in China’s Internet industry.
Western tech companies are under the same pressure of dismissal in China. The country’s data law prohibits user data from leaving its borders, so companies like Apple and Tesla Chinese user data has long been stored in local cloud centers.