Alibaba Cloud sees big growth, aims for public cloud expansion
The quarterly figures are impressive and all eyes will now be on the next quarter to see if the coronavirus affects matters, as company chief says firm is ready for the challenge.
Alibaba Cloud maintained high growth for the fourth quarter ended 31 December 2019, with revenue growing 62% year-over-year to RMB10.721bn (US$1.540bn). The growth was reported as part of parent Alibaba Group’s (NYSE: BABA and HKEX: 9988) posted quarterly results.
The leading Chinese cloud service provider said sales were driven from both its public cloud and hybrid cloud businesses. Ahead of its 11.11 Global Shopping Festival during the quarter, Alibaba Cloud said it enabled the migration of the Alibaba Group’s core ecommerce businesses onto its public cloud.
“During the festival, Alibaba Cloud provided a highly scalable, reliable and secure public cloud infrastructure that handled a single day GMV of RMB268.4bn (US$38.4bn),” the firm said.
The new public cloud infrastructure and technologies enabled Alibaba Group to process over 544,000 orders per second at peak and 970 petabytes of data without disruption for the full 24-hour period during the festival.
“This year’s festival also showcased the strength of our leading cyber security technology in the public cloud environment, which is a key priority of many of our public sector and industry customers,” Alibaba Cloud added.
The migration of Alibaba’s core shopping systems onto the public cloud will encourage more cloud customers to adopt Alibaba Cloud’s public cloud infrastructure, maintained the firm.
Daniel Zhang, chairman and chief executive officer of Alibaba Group, said: “As a result of its rapid growth, our cloud computing services for the first time generated revenue of over RMB10bn in a single quarter.”
On the situation with the coronavirus, Zhang said: “We mobilised Alibaba ecosystem’s powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants.
“No matter past, present or future, we remain true to our mission and we will support our merchants to overcome this challenging time together.”