With the Chinese e-commerce giant Alibaba planning to expand its reach and business across Asia, a range of new cloud computing products was launched by it recently.
The company has been aggressively boosting its presence outside of China in the last few years in the area of cloud computing which the company views to be one of the major drivers for profits for the company in the long term.
In addition to making public its plans for development of a new data center in the Philippines by the end of the current year, the company on Tuesday also announced launching of its third data center in Indonesia.
A larger number of data centers provide cloud computing service providers the opportunity to enhance their capacity in certain countries or regions.
A cloud-based livestreaming product created specifically to cater to online shopping needs was also launched by Alibaba. This product can be used by e-commerce companies to launch a live stream shopping feature on their websites or apps which use Alibaba’s cloud for hosting.
Livestream shopping typically comprises of a host talking about products which can be bought directly by customers from the live broadcast. This feature has gained popularity in China and is also gaining popularity fast in other parts of Asia.
According to the expectations of the Chinese e-commerce firm, this new livestreaming product will help it to distinguish itself from its United States based rivals in the cloud computing segment including Microsoft and Amazon.
According to IDC at the end of 2020, Alibaba was the biggest public cloud market vendor in the Asia-Pacific region and possessed a market share of 19.2 per cent primarily because of its success in the Chinese market. Amazon, which had a market share of 10.5 per cent in the region was placed second for the same period.
But Alibaba still trails Microsoft, Amazon and Google in the global market for cloud computing.
This announcement of boosting its cloud computing business was preceded by Alibaba reporting its first net loss as a public company for the January to March quarter. This was primarily because of the huge $2.8 billion fine slapped against the company as the outcome of an anti-monopoly investigation by Chinese authorities.
In its current fiscal year, the company would invest “incremental profits and additional capital” in “new businesses and key strategic areas”, said Maggie Wu, Alibaba’s CFO.
With Chinese technology giants such as Huawei and Tencent stepping up their cloud computing investments in recent times, there has been increased for Alibaba in the Chinese market.
(Adapted from CNBC.com)