Alibaba Cloud, a Chinese cloud computing company and the subsidiary of Alibaba Group, is expecting a profit this fiscal year for the first time, reported by the company.
This is good news for the cloud computing investors who have been backing up the business for years. Alibaba Group’s leadership already indicated that cloud computing will be essential for the future growth of the company.
Daniel Zhang, the CEO of Alibaba explained that cloud business will be the “main business” for Alibaba in the future, according to CNBC.
“We strongly believe that every business in the future will be powered by cloud. We are very happy to build this cloud infrastructure in a new digital era and support all business,” According to Zhang.
Alibaba’s current fiscal year will end on March 31, 2021, and finance chief Maggie Wu thinks that the cloud business will become profitable within the next few months.
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Alibaba Cloud Business Successes in Recent Years
Alibaba cloud is known as the fastest-growing concern for the Chinese e-commerce giant, Alibaba Group.
The success came due to the expansion of business in Europe and Asia. Alibaba’s cloud business had $1.75 billion in revenue in the last quarter which went up by 58%. However, the business had little impact on the overall Group as it is only 8% of the Chinese giant.
Martin Garner, senior vice president of a U.K.-based analyst firm said, “Alibaba is investing at a tremendous rate to build up its cloud services. It has become one of the world’s hyperscale cloud players, catching up with Amazon, Microsoft and Google.”
“We strongly believe that every business in the future will be powered by cloud. We are very happy to build this cloud infrastructure in a new digital era and support all business,”
– Daniel Zhang
According to Synergy Research Group, Alibaba’s cloud business is just behind Amazon in the Asia-Pacific region. However, Alibaba is the number one cloud business in China.
The Chinese Group is also competing with the top four- Amazon, Microsoft, and Alphabet Inc in the cloud business globally.
Already, The company declared a $28 billion investment in the cloud computing division to compete with other giants in the industry.