Chinese online retailing giant Alibaba has said that its cloud division will unseat the Azure platform of Microsoft to become the second-biggest provider of cloud computing services and infrastructure in the world. According to the president of Alibaba, Simon Hu, this will happen in a period of between two and three years.
IDC currently places Alibaba Cloud as the third biggest operator of public cloud services in the globe. The leading operator is Amazon Web Services. In China Alibaba Cloud is the leading operator of public cloud services.
Large-scale operational experience
During a computing conference which was held last week Hu said that in order to succeed in the cloud computing sector the most important thing to have was a large-scale operational experience rather than technology since this experience would assist in figuring out ways of meeting the demand in the market. Based on this fact alone Amazon and Alibaba held an advantage over other operators.
According to Hu, another advantage that Alibaba possesses is the fact that its domestic market of China has the largest population in the world as well as a huge manufacturing sector. And given that the US is already a market leader with China coming in second, only the two countries would effectively compete for the worldwide cloud computing market.
“Although the US leads in developing cloud computing, China, with a large manufacturing sector and the world’s largest population, has been fast developing mature Internet service applications, affording good opportunities for development of Alibaba Cloud,” said Hu.
One Belt One Road
Other advantages that Alibaba Cloud possessed included the internationalization of enterprises in China as well as the government initiative known as ‘One Belt One Road’. As a result of these advantages Alibaba Cloud as well as other enterprises are a boost to technological development and industrial upgrading based on artificial intelligence, big data and cloud computing in regions that include Asia Pacific, the Middle East, North America and Europe.
According to Hu Alibaba Cloud can offer competitive cloud computing services to foreign firms intending to access the market in China as well as enterprises based in China that were keen on tapping the global market. About 30% of the top 500 Chinese companies are using the cloud computing services of Alibaba Cloud. Last year revenues for Alibaba Cloud grew by 126.5% to reach a figure of $675 after strong domestic growth. In the same period Amazon Web Services recorded revenues of $12.2 billion.