Launching new discounts, Alibaba Cloud aims to promote its cloud service globally.
Alibaba Cloud's recent announcement of across-the-board price reductions in overseas markets has sparked widespread attention in the industry. According to information provided by Alibaba Cloud, this price reduction covers over 500 specifications of core cloud products across 13 global regional nodes, spanning computing, storage, networking, databases, and big data services. With an average reduction of 23% and reaching as high as 59%, this price adjustment not only signifies an enhanced price competitiveness for Alibaba Cloud in overseas markets but also provides more attractive options for international customers.
In fact, Alibaba Cloud has rolled out various promotional policies since the first large-scale product price reduction in April 2023. On February 29th of this year, Alibaba Cloud announced the "largest-ever scale price reduction." This reduction in overseas markets is another significant strategic move by Alibaba Cloud to expand its market share and consolidate its industry leadership. The business model of cloud computing exhibits network effects and economies of scale, where the more customers it serves, the lower the procurement costs, R&D costs, and resource idle costs become. Therefore, through price reductions, Alibaba Cloud aims to attract more small and medium-sized enterprise developers and expand its influence.
In addition to price reductions, Alibaba Cloud has introduced a series of new products and ecosystem incentive policies targeting overseas markets, accelerating its expansion efforts abroad. These new products primarily focus on AI training and application development, such as the PAI Lingjun Intelligent Computing Service and large model hosting services. Meanwhile, Alibaba Cloud has also raised partner commission rates and increased investment in building localized service systems to better meet the needs of international customers.
Currently, the world is at a crucial moment of transition from traditional computing to AI computing, with public cloud platforms showing vast application prospects. In response to this background, Alibaba Cloud has stated its commitment to continuously reducing cloud computing costs by unleashing economies of scale and technological dividends, actively promoting technological innovation, and supporting global developers and enterprises in seizing growth opportunities in fields such as artificial intelligence and big data.
Apart from Alibaba Cloud, other domestic cloud service providers such as Tencent Cloud and Huawei Cloud are also actively expanding their presence in overseas markets. According to a report released by iiMedia Research last year, the overall scale of China's cloud "going global" market continues to expand, especially in the Asia-Pacific region, where it has significant influence. With the accelerating pace of Chinese companies going global, cloud service providers are poised to encounter even greater development opportunities in overseas markets.