Here’s Alibaba’s Mission as It Enters Brazil Cloud Market

Brazil is fastest-growing cloud market in South America

Alibaba (BABA) is launching its cloud computing service in Brazil, according to a report from Xinhua news agency. In Brazil, Alibaba is targeting Chinese companies operating in the country. Alibaba has identified a local partner known as UOL Diveo that will resell its cloud services in Brazil.

According to a report released by IDC in February this year, Brazil is the fastest-growing cloud market in South America. With that in mind, Alibaba is entering a market with huge growth potential for its cloud business.

Here’s Alibaba’s Mission as It Enters Brazil Cloud Market

Alibaba is the fastest-growing major cloud company

Cloud has been Alibaba’s fastest-growing business in recent years as the company has been adding more customers in and out of China, where it already dominates the cloud market. The introduction of new services and solutions has also helped fuel growth in Alibaba’s cloud business, as this has helped raise revenue per cloud customer. In its fiscal 2019 fourth quarter, which ended in March, Alibaba recorded cloud revenue growth of 76% YoY to $1.2 billion. Its core commerce business grew 58% YoY, and its media business grew 8.0% YoY during the quarter.

Alibaba’s cloud revenue growth rate also outpaced the growth at all its major rivals in the quarter. Microsoft (MSFT) recorded cloud revenue growth of 73% YoY in the March quarter, and Amazon (AMZN) recorded cloud revenue growth of 41% YoY in that period. Revenue rose 23% YoY in Google’s (GOOGL) unit that houses the cloud business. IBM’s (IBM) cloud revenue fell 2.0% YoY in the March quarter.