The clashes amongst AWS, Microsoft, and Google are going on to cover the broad market by offering cutting-edge and reliable could services. These are the tech leaders who always remain on the top of our tongue. But the cloud space is getting larger with each passing day as new companies are coming to the floor.
Here, we are going to share the details about such a company that has attained unpredictable growth in the realm of cloud computing that is out of our imagination. Are you aware of that cloud company? It’s Alibaba Cloud. A robust cloud service provider and a tough competitor for all the other premier computing companies. Learn about the company in details along with its key strategies for global business expansion.
Alibaba Cloud is the subsidiary of the e-commerce hub Alibaba Group. We all know Alibaba is a China-based e-commerce company having a considerable huge establishment in the online marketplace. The group launched its cloud services in 2009 just after the three years of Amazon Web Services introduced its cloud division. Today, cloud is the most ambitious project of Alibaba Group where they are investing their hard efforts to win over AWS.
The company has an exclusive range of cloud computing products and services that are divided into 7 categories of Elastic Computing and Networking, Security and Management, Database, Application Services, Domains and website, Storage and CDN and Analytics. Customers of Alibaba Cloud are eligible to get the benefits of cloud security, record breaking computing power, cloud security, safeguard your data, etc.
Cloud is relatively new technology for the Chinese market, and Alibaba is proudly leading the cloud industry in its own region. The company has strategized its growth so that it can take part in the race of other cloud market leaders such as AWS, Microsoft, Google, IBM, Salesforce, etc.
Amazon vs. Alibaba
While comparing Alibaba with Amazon, both the companies are the front-runners of the online retail market. The e-commerce rivalry took a new turn when Alibaba entered into the cloud computing under the name Alibaba Cloud where AWS is the king of the jungle.
Surely, Alibaba is too far from where AWS is standing and ruling the cloud industry at the current time. But, Amazon Web Services will have a tough fight with this cloud service provider along with Microsoft Azure and Google in the upcoming future. Read out the achievements of Alibaba Cloud that proves its eligibility to be considered as another cloud giant for sure.
Business Expansion of Alibaba Cloud
Alibaba is has channelized its efforts and started to work strategically to empower its cloud efficiency in order to win the battle of cloud computing with all the other market leaders. Have detailed insights into how Alibaba is expanding its market reach, technical efficiency, and revenue chain.
Global Position of the Company
Recently the company has announced to set up its new data centers across different continents to enlarge the market reach meet the increasing demand. Now, Alibaba Cloud will be available in Australia, Germany, Japan, and Dubai along with China and U.S. The company is gaining tremendous popularity across Asian countries too.
According to NASDAQ Amazon is valued at $400 billion and Alibaba’s market cap exceeds $250 billion as per its NYSE market share.
Two years back, Alibaba Cloud decided to expand its business out of China. At the same time, the company’s president Simon Hu stated, “Our goal is to overtake Amazon in four years, whether that’s in customers, technology, or worldwide scale.”
In 2015, Alibaba Cloud achieved the count of 500 users that contains payment services, digital banking, and branded mall. Year over year, more and more businesses are adopting Alibaba cloud. According to a report released in December 2016, the company has been growing by 115% during the seventh quarter. If the growth will be consistent in the future, then the company will reach breakeven point or start earning profits.
In the most recent quarter, Alibaba Cloud earned the revenue of $254 million. The number sounds really good for a growing company. But, it is still far away from its competitor AWS which grew at more than 47% rate having a total income of $3.53 billion.
As per Synergy Research Group, Alibaba Cloud holds sixth rank across the globe after AWS, Microsoft, Google, IBM, and Salesforce in terms of cloud platform, infrastructure and hosted cloud service providers.
Alibaba Cloud has 765000 paying customers in its pocket during the last quarter.
Chinese cloud market is still a few years behind than the U.S. cloud industry. So, Alibaba has immense opportunities to earn more bucks from its own region by delivering reliable products and consistent services.
The company has set up its 14 data centers across the globe.
Establishment in U.S. Market
Target Small to Large Scale Customers
Alibaba started approaching small business and offered them its cloud products and services, just like AWS. Now, they are moving their focus to the larger scale businesses as the company is confident enough to handle the massive workload of big sized financial services and e-commerce organizations.
New U.S. President and New Challenges
The 45th President of the U.S. has introduced several new and strict policies for the tech industry. Mr. Donald Trump has revealed tough trade policies for China as well. So, it will be quite hard for Alibaba Cloud to enter into the U.S. cloud market. Well, to make its position stronger and to get the support from the U.S. President, the company has committed to generate 1 million new jobs across the country.
While focusing on the expansion of the cloud services, Alibaba also takes care of its e-commerce business that is currently performing above the expectations. Moreover, the company looking forward to a large-scale regional expansion by investing in various small to large scale organizes belongs from different countries and industries. For example; to generate new revenue, the company has invested in the stack of India’s leading mobile payment wallet, Paytm. It has also set up a strong relationship with Snapdeal. It also holds a share in Lazada, a leading online shopping site in South Asia.
We all know a big fight is going on amongst AWS, Microsoft and Google. Obviously, there is no match of AWS when we talk about cloud computing for now. The next strong players in the race are Microsoft and Google. But, the growth graph of Alibaba speaks a lot about the neck to neck to competition in the very near future.
Let’s hope competition amongst these giants facilitate the organizations with outstanding benefits in terms of technology, innovations, and costing.
Intuz is an AWS certified consulting partner, so we are keen to learn all about the changing trends in the cloud industry. We are looking forward to some breakthrough innovations while the industry is grooming under such market leaders who hold proven technical excellence and long-lasting experience.