Ali cloud is happy but still lagging behind rivals such as Amazon AWS

Ali cloud is happy but still lagging behind rivals such as Amazon AWS

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Sina Technology News Beijing time March 20th afternoon news, last week Alibaba issued the third quarter financial report. The revenue of cloud services reached $533 million, a surprising 104% increase compared to the same period last year. However, Ali cloud is still lagging behind the three cloud service leaders such as Amazon, Microsoft and IBM, and the three companies' single quarter cloud services revenue has exceeded 4 billion dollars. In front of Ali, there are Google.

Although Ali cloud grows very well, what they need to be aware of is that the smaller the share of the market, the greater the space for growth. In other words, the bigger the market share, the more difficult the growth will be.

It needs to be pointed out that this is the first 5 of Ali Yun's first Synergy Research's cloud computing infrastructure market share report. Although the market share is only between 3-4%, they have finally left their names on the list, rather than being classified in the category of "other enterprises".

The Synergy report showed that the size of the cloud service market rose by 46% in the fourth quarter of last year, and the size of large enterprises was more than the smaller ones. The report points out: "a large part of the reasons for the increase in market size come from AWS, Microsoft, Google and Alibaba. These enterprises have increased their share in the global market, and smaller businesses have lost part of the market share."

It is not surprising that smaller companies are struggling in the market, but they set off the rapid rise of the Ali cloud. Although Alibaba launched its own cloud service business in 2009, it was only several years behind AWS, but the company didn't take the business seriously until 2015, and invested 1 billion dollars in it. Although the investment seemed not so much at the time, it was very effective.

Although Alibaba's business is mainly developed in China and Asian markets, the market is large enough for Alibaba to get enough energy to enhance market share. A report released by Synergy last year showed that China's cloud service market is dominated by local cloud service enterprises, and Ali cloud is China's largest cloud service provider.

If Ali wants to continue to increase its market share, they may need to enter western markets, especially in the US market. At present, Ali Yun has 14 data centers around the world, of which only two are in the United States, one in Silicon Valley and the other in Virginia. At present, Ali Yun plans to build new data centers in China, Malaysia, India and Indonesia. (Hang Yun)

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