Alibaba Cloud challenging global rivals in APAC

By Dylan Bushell-Embling
Monday, 08 October, 2018

Alibaba Cloud challenging global rivals in APAC

The Asia-Pacific cloud services market is on track to grow from $16.2 billion in 2017 to $55.2 billion in 2022, representing a compound annual growth rate of 27.7%, according to GlobalData.

In a new report, GlobalData also predicted that China’s Alibaba Cloud will build on its dominant position in its home country and carve out an even larger share of the regional market, closing the gap with global cloud provider rivals AWS, Google Cloud, IBM Cloud and Microsoft Azure.

Alibaba Cloud is estimated to have captured almost half of China’s infrastructure-as-a-service market, and doubled its annual revenue to $2.1 billion in FY18.

“China has nearly three times the number of internet users compared to the US, which speaks volumes around its ability to scale. Alibaba Cloud is now betting big on some emerging markets such as India, Malaysia and Indonesia while competing with others in developed markets such as Hong Kong, Japan, Singapore and Australia,” GlobalData Technology Analyst Siow Meng Soh said.

Soh said that the ongoing migration of IT to the cloud has prompted telecoms and IT service providers to partner with top cloud infrastructure providers to support their customers.

“Going forward, they need to broaden the list of partners since customers are likely to be using a wider range of cloud services and Alibaba Cloud should be on the list for consideration... Alibaba Cloud is a rising cloud provider and a force to be reckoned with.”

The company is also aiming to establish up to 10,000 partnerships globally, and already has partnerships in place with companies including Singtel Group — the Singapore-based parent company of Optus — and Vodafone Group.

The report found that Alibaba Cloud is also closing the gap with rivals in terms of range of products and speed of releases, and has beaten the competition to market with a software-defined wide area network (SD-WAN) offering.

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