Alibaba Cloud pledges $1 billion to strengthen foreign alliances • TechCrunch

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Alibaba is known for its sprawling e-commerce empire, but like Amazon, the cloud service has been a big driver of its revenue in recent years.

The Chinese cloud giant is ready to double its borders announced today, a $1 billion investment in “modernizing the global partner ecosystem.” Alibaba Cloud is now available the third largest public cloud provider in the worldan achievement that is inseparable from the extensive network of local allies that have been formed around the world.

The company is constantly recruitment of local partners take on responsibilities such as sales, technical support and customer service. The $1 billion initiative is designed to “support partners’ technological innovation and market expansion with Alibaba Cloud over the next three fiscal years,” the company said. The money will come in the form of both financial and non-financial incentives, including financing, rebates and go-to-market initiatives.

Alibaba Cloud currently has around 11,000 partners worldwide, including Salesforce, VMware, Fortinet, IBM and Neo4j.

According to the market research company, in 2021 Alibaba Cloud’s market share was 9.5%, behind Microsoft (21%) and Amazon (39%). Gartner.

Based in Hangzhou and expanding worldwide, the cloud service has become the go-to cloud solution for many Chinese companies going overseas. But rising national security tensions between China and the West have turned some customers away from the cloud platform. TikTok is reportedly trying to win over US regulators moved from Alibaba Cloud and moved all its data to the US on Oracle servers.

Even early-stage Chinese companies are joining the technological bifurcation. In the past few months, several consumer-focused Internet startups, including a social network and a productivity tool, have told me they store all their offshore user data in foreign cloud services just to avoid regulatory scrutiny down the road.

Alibaba Cloud has recently suffered from slowing growth and the loss of one key cloud customer, which industry observers believe is ByteDance. As the company noted in its Income statement for June:

Our Cloud segment’s year-over-year revenue growth reflects a recovery in growth in the general non-Internet industries, driven by the financial services, government services and telecommunications industries, partially offset by lower revenues from top Internet customers who gradually stopped using our cloud services abroad for their international business from -for non-product requirements of online education customers, as well as softening demand from other customers in China’s online industry.

Western technology firms are under the same pressure to unbundle in China. A country’s data law prohibits user data from leaving its borders, so companies like Apple and Tesla have long stored Chinese user data in domestic cloud centers.

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