Alibaba cloud launches China gateway program
Last year, Alibaba (BABA) unveiled a plan to help global businesses access the Chinese market. Under that plan, Alibaba aims to bring $200 billion worth of imports to China in five years as it looks to take advantage of strong demand for high-quality international brands among China’s middle-class consumers. Now Alibaba is bringing its cloud computing unit to help its commerce arm achieve its goal of helping international businesses sell their goods in China.
On May 30, Alibaba Cloud launched a China gateway program in Singapore. Through the gateway program, the Alibaba cloud unit will contribute its technology to help international businesses access the Chinese market. The strategy will involve connecting those businesses with Chinese companies and consumers depending on whether they are into wholesale or retail businesses.
$214 billion up for grabs in global cloud market in 2019
Joining Alibaba’s commerce initiative of bringing more international goods to China could actually help the cloud unit win more clients. For example, it could sell cloud services to international businesses looking for access to the Chinese market. Cloud computing is a lucrative business. According to Gartner estimates, $182.4 billion was spent on public cloud services in 2018 and $214.3 billion will be spent on such services in 2019. By 2022, the global public cloud market is projected to be worth $331.2 billion.
At the moment, Alibaba cloud is ranked fifth in terms of global cloud market share. According to Synergy Research data, Alibaba captured around 5.0% of the global cloud market in the first quarter. Amazon (AMZN) and Microsoft (MSFT) topped the chart with a 35% and 15% share, respectively. Google (GOOGL) and IBM (IBM) captured 7.0% and 6.0% of the global cloud market in the first quarter, respectively.