On Mar 21, 2019, Ali Cloud held its ten-year summit meeting. ZHANG Jianfeng (张建锋), the president of Ali Cloud Intelligence, attended the conference. According to ZHANG, all the future’s commerce and technology would be built on the cloud. By that time, the cloud would be equipped with Internet technology, and what Ali Cloud should do is to wait for “being integrated”.
According to ZHANG, in the future, all of the Alibaba’s technology would be based on the cloud. The output of technology and production, as well as the service to the business side, must with the help of Ali Cloud. The financial cloud, a working system like Ding Talk, and the core technology and new productions of new retail, all these kinds of services and technologies should be based on the cloud in the future. “Currently, 60%-70% of the Alibaba’s business is operated on the public cloud. In the next 1-2 years, 100% of Alibaba’s business would be operated on the cloud. “ZHANG said.
According to ZHANG Jianfeng, Ali Cloud would be part of the solutions of commerce and help its partners to update their infrastructures, technologies, and systems. In addition, Ali Cloud does not make its own SaaS but will help others to build a better SaaS system. What Ali Cloud focuses is the technology innovation and breakthrough – which is the things that Ali is best at.
In recent years, innovated businesses like Freshhema and Ding Talk shows the variety of Ali’s businesses. The operating of the giant E-commerce requires a strong computing ability which could digitally deal with commercial situations. In the future, Ali Cloud would focus on new retail, new finance, and digital government.
According to Gartner, in 2018, the global cloud market increased by 24.4%. The “3A” association which includes AWS of Amazon, Azure of Microsoft, and Ali Cloud, occupies more than 70% market share. According to IDC, the market share of Ali Cloud is 43%, ranks top 1 in China, which equals to the sum of the second to the ninth.
In terms of financial performance, in 2018, the revenue of Ali Cloud was CNY 21.4 billion. During the past 4 years, Ali Cloud’s revenue increased almost 20 times. According to Baidu’s financial report, the revenue of its cloud service was CNY 1.1 billion. On Mar 21, 2019, Tencent published its annual report of 2018 and announced that in 2018, the Tencent Cloud’s revenue reached CNY 9.1 billion.
Ali Cloud invested a lot in research and development. 3 years ago, Ali established Damo College and invested a lot in computer intelligence, embedded chips, and database. According to ZHANG, Ali has sold 200 million embedded chips in 2018. In the second half of 2019, Alibaba would publish the first NPU developed by Ali, which has a stronger performance.
Ali Cloud also published “Mini Program Cloud” on its summit meeting. According to MA Jing (马劲), the manager of Ali Cloud – Special Cloud, the Mini Program Cloud could offer solid and convenient back-end cloud services to developers, including serverless developing tools, function computing, etc. Besides, Alibaba would offer up to CNY 2 billion for mini program developers, and this action names “Star Plan”. For mini-programs that supported by this plan, they would receive financial and data support form Ali Pay, Taobao, Ding Talk, and Gaode.