DingTalk's Separation from Alibaba Cloud: Profitability Targeted in 3 Years

Technology Author: Xin Zeng, Yiran Xing Aug 17, 2023 12:43 PM (GMT+8)
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DingTalk(Chinese:钉钉) President Ye Jun announced internally that DingTalk will no longer be managed by Alibaba Cloud Intelligence Group and will become an independent "N" company,on the evening of August 13th. However, Alibaba Cloud and DingTalk will continue to maintain close business cooperation.

DingTalk (China) Information Technology Co., Ltd., hereinafter referred to as "DingTalk," was established in 2018 and is located in Hangzhou, Zhejiang Province, China. DingTalk is an enterprise-level intelligent mobile office platform created by Alibaba Group. Users from various industries can also build customized digital applications for their organizations through SaaS software on the DingTalk open platform, integrating all digital systems within the enterprise. Non-coders can also utilize low-code tools to build personalized systems such as CRM, ERP, OA, project management, and inventory management.

Currently, DingTalk has opened more than 2,000 API interfaces, providing an open and compatible environment for enterprise digital transformation. As of August 31, 2021, DingTalk has surpassed 500 million users, including more than 19 million organizations, including enterprises and schools.

According to the "SAAS Industry Trend Insight" report, the global cloud computing market is undergoing rapid and systematic transformation as the digitalization process continues to advance and is influenced by the pandemic. In 2021, during the gradual recovery in the post-pandemic era, the global digital transformation peak has arrived, and the cloud computing market reached a scale of USD 544.9 billion, with a growth rate of 24.6%. By the end of 2022, the global cloud computing market is expected to reach USD 669.2 billion, with the market size potentially exceeding USD 800 billion by 2023. Currently, the global cloud computing market is still dominated by public clouds, accounting for about 70% of the market share, while private clouds and hybrid clouds occupy a smaller market share.

Alibaba DingTalk officially launched the international version of DingTalk Lite,supporting multiple languages including Traditional Chinese, English, and Japanese,On April 8, 2020. It mainly includes functions such as video conferencing, group live streaming, chat, and scheduling. During the pandemic, it was provided for free to global users. DingTalk has expanded its business to countries and regions such as Japan, Indonesia, Malaysia, Singapore, the Philippines, Australia, Hong Kong, and Macau.

Leading domestic SAAS companies include Yonyou(Chinese:用友), Fxiaoke(纷享销客), and Beisen(Chinese:北森), among others. Foreign companies include Salesforce, Snowflake, and others.

With this adjustment, DingTalk has become Alibaba's first "6 to N" company, on par with other "N" companies such as Hema(Chinese:盒马), Fliggy(Chinese:飞猪), and Lingxigames(Chinese:灵犀互娱), creating an environment for independent company development. According to a report by "LatePost," N companies under the "1+6+N" framework are Alibaba's innovative businesses, and the group will provide financial support for three years. In the long run, these companies will need to rely on their own operations and external financing to survive independently. As a collaborative office and application development platform under Alibaba, DingTalk has transitioned from the Alibaba Cloud Intelligence Group to being a part of the "N" companies, entering into a new development cycle.