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Alibaba’s cloud computing services business under spotlight again, following service outage in December, as revenue growth slows
- Alibaba Cloud posted a 3 per cent year-on-year revenue increase in the December quarter, marking the subsidiary’s slowest growth last year
- The company attributed that result to a decline in internet customers during the quarter
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Alibaba Group Holding’s cloud computing services subsidiary, which is considered a major growth driver for the e-commerce giant, is under the spotlight again after the business reported its slowest quarterly revenue gain in the past 12 months.
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Alibaba Cloud posted a 3 per cent year-on-year revenue increase to 20.18 billion yuan (US$2.92 billion) in the three months ended December 31 to mark its slowest growth last year, when sales reached as high as 12 per cent in the March quarter and 10 per cent in the June quarter.
In the same December quarter, cloud industry leader Amazon Web Services reported record-low revenue growth of 20 per cent, down from a 40 per cent gain a year earlier, as overall spending in the global market slowed.
Alibaba chairman and chief executive Daniel Zhang Yong, who took over control of Alibaba Cloud last December after a major service outage, said in a conference call on Thursday that he remained confident about the business, which includes enterprise collaboration platform DingTalk.
Zhang said the cloud business is “an opportunity of extreme strategic importance to Alibaba”, which owns the South China Morning Post.
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