How Alibaba Wants to Compete in Global Cloud Market

Alibaba (BABA) has taken over the Chinese cloud computing market.

Neha Gupta - Author

Jun. 12 2019, Published 2:21 p.m. ET

uploads///Global Cloud Market

Alibaba expanding its international cloud footprint

Alibaba (BABA) has taken over the Chinese cloud computing market, according to Synergy Research data, and now the company has its sight on dominating the international cloud market as well. As part of its international cloud expansion drive, Alibaba is entering the Brazilian cloud market in partnership with a local firm known as UOL Diveo, which will resell its cloud services in the country. Brazil is the fastest-growing cloud market in South America, according to a report from IDC.

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Alibaba wants to be customer-focused, not competition-focused

As Alibaba expands its international cloud footprint, the company’s international chief product officer for the cloud business, Henry Zhang, says that Alibaba wants to approach competition in the international cloud market differently.

In the competition for cloud customers on the international stage, Alibaba wants to focus on providing products and services that its target customers want rather than bothering about what its rivals are doing and trying to copy their strategies, Zhang told ComputerWeekly magazine recently.

Alibaba leading in cloud revenue growth

At the moment, Alibaba boasts the fastest-growing cloud business among the world’s largest cloud companies. Alibaba’s cloud revenue rose 76% YoY to $1.2 billion in the March quarter, outpacing the 73% YoY increase in cloud revenue at Microsoft (MSFT) and 41% YoY increase in cloud sales at Amazon (AMZN) in the March quarter. Revenue rose 23% YoY in Google’s (GOOGL) segment that houses the cloud business in the March quarter, whereas IBM (IBM) recorded a 2.0% YoY drop in its cloud revenue in that quarter.


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