China’s Alibaba Group’s cloud sector posted a net profit for the first time in 13 years despite tightening authorities’ regulations, the spread of COVID-19, and the economic slowdown.
According to Hong Kong’s South China Morning Post (SCMP) on the 28th, Alibaba Group, China’s largest e-commerce company, announced on the 26th that it had a net profit of 11 billion yuan in the cloud sector for a year from April 1 last year to the end of March this year. It is the first time that Alibaba Cloud has turned into a surplus since its business began in 2009.
Libyan Lee, an analyst at Frost and Sullivan, a global market research firm, gave meaning to Alibaba Cloud’s return to the black at a time when the global economy is in recession, saying, “It laid an important foundation in China’s entire cloud business.”
Cloud is to use data anytime, anywhere by simply storing it on a central computer and accessing the Internet. Cloud services refer to cloud service companies buying, selling, renting, or distributing software and other digital resources as if they were selling electricity.
Alibaba Cloud’s sales reached 100.2 billion yuan from April 2021 to March 2022, up 21% year-on-year.
In the wake of the COVID-19 incident, China’s cloud service market is growing rapidly, and Alibaba Cloud Intelligence, a subsidiary of Alibaba’s cloud sector, has a market share of about 40%.
Alibaba Group is fostering the cloud sector as its main business. Earlier, Alibaba actively used the 2022 Beijing Winter Olympics as an opportunity to promote its cloud technology to the world.
Alibaba Chairman Jang Yong predicted that China’s cloud market will reach 2 trillion yuan by 2025.
