Alibaba is ensuring that its cloud will now be its main activity, announced the company’s CEO Daniel Zhang. In a speech on Wednesday, he called technology “an engine of growth,” but said the world is at a crucial time in the age of the global cloud. That kind of opportunity only comes once in a generation, he says.
Alibaba’s cloud computing has seen the strongest growth in recent years as it expanded outside of China. Between June and September, cloud revenue rose 58.5% to 1.5 billion euros. However, it still only accounts for 8% of the Chinese giant’s total sales.
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Investment of 25 billion euros for Alibaba Cloud
According to Synergy Research, Alibaba is the second largest cloud computing player in the Asia-Pacific region after Amazon. The Chinese company is behind Amazon, Microsoft and Google worldwide.
She said she will invest 25 billion euros in the cloud over the next three years. This is a significant amount that the Chinese giant has been willing to invest thanks to the increase in teleworking since the Covid-19 pandemic began.
“The Chinese tech giant wants to look beyond China and Southeast Asia to sustain current levels of growth, but it remains difficult to penetrate western markets due to politics and perceptions. towards data, ”said Howard Yu, Professor of Management and Innovation at IMD Business School in Switzerland.
5,000 international recruits of experts
Alibaba’s cloud computing business will recruit 5,000 of the world’s top technology professionals by 2021. “China’s digital commerce transformation project, which was originally scheduled to take three to five years, is now expected to accelerate to completion within a year,” said Jeff Zhang, chairman of Alibaba Cloud Intelligence.
In this way, thanks to its massive investments, Alibaba could win many customers on a global scale, which could ultimately overshadow the current market leaders. The company has also strengthened its capabilities in promoting distance learning as well as online activities.