Alibaba pledges $1 billion to cloud computing customers to reignite growth

Alibaba faces growth challenges amid regulatory tightening in China’s domestic technology sector and a slowdown in the world’s second-largest economy. But analysts think the e-commerce company’s growth will pick up in late 2022.

Kwang Da | Gemian News | VCG | Good pictures

Alibaba The Chinese e-commerce giant said it will invest $1 billion over the next three fiscal years to support its cloud computing customers as it looks to regain growth after a historic slowdown.

Alibaba said in a press release Thursday that the investment will be “financial and non-financial incentives, such as financing, discounts and go-to-market initiatives.”

The company said it will also set up a plan to help localize customers’ cloud computing business needs depending on the market.

Alibaba is the world’s third largest cloud computing player behind Microsoft And AmazonAccording to Gardner. Although cloud computing is currently a small part of Alibaba’s overall business, the company’s management does A critical component for future growth and profitability.

However, Alibaba has seen an unprecedented slowdown in growth amid a Chinese economic slowdown due to the Covid resurgence and a tough domestic regulatory environment in the world’s second-largest economy. During the April to June quarter, Alibaba reports its first flat revenue growth.

Revenue growth in its cloud computing business also slowed from the previous quarter.

Alibaba’s investment announcement is part of China-headquartered Hangzhou’s broader push to expand its cloud computing business overseas.

Over the past few years, Alibaba Opened new data centers outside of China To win customers in other markets like Singapore and Thailand.

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