Chinese cloud provider Alibaba Cloud boosts growth and expansion by investing $1 billion to increase overseas reach.
Alibaba Cloud is one of the world’s largest public cloud providers and operates in various countries. The company enjoyed a 9.5 percent market share in 2021 and competes with notable firms like Microsoft and Amazon.
Alibaba Cloud continues its expansion by announcing a $1 billion investment in a “global partner ecosystem upgrade” to increase its overseas reach. The purpose of this venture is to support their partners’ technological growth and expansion with Alibaba Cloud. The investment money will come in the form of market initiatives, rebates and funding to increase the chances of growth.
Alibaba Cloud comprises 11,000 partners throughout the globe, including Salesforce, VMware, Fortinet, IBM, and Neo4j. Moreover, the company is hiring additional local partners for technical support, sales, and customer services. Alibaba Cloud is a popular cloud computing service for local businesses that are expanding overseas.
Cloud client losses for Alibaba
There has been a significant increase in cloud privacy concerns and scrutiny in China. The country has banned user data from leaving the country. As a result, Alibaba Cloud is facing a substantive loss in cloud computing clients.
Recently, TikTok has moved all of its US traffic from Alibaba Cloud to Oracle. Alibaba Cloud lost ByteDance, the owner of TikTok and one of its major cloud computing clients.
The Chinese cloud giant is suffering from slow growth as users are storing their data on foreign cloud servers to avoid regulations imposed by the Chinese government. Alibaba Cloud’s $1 billion investment should increase the chances of international growth.