Alibaba’s cloud computing unit reshuffles management as it aims for high-quality growth

April 13, 2022 0 Comments

Alibaba Cloud, the cloud computing arm of Chinese e-commerce giant Alibaba, is undergoing a major management reshuffle.

Cai Yinghua, President of Alibaba Cloud Global Sales, announced the new organizational structure and strategic direction at the internal management meeting yesterday.

Ren Geng, the president of Alibaba Cloud China, has resigned, and Huang Haiqing, the current vice president of Alibaba Cloud, will take over once Ren has departed. Huang previously worked for Dell, Oracle, and Tencent Cloud before joining Alibaba.

In the meantime, Alibaba vice-president Guo Jijun, who is in charge of Alibaba Cloud’s sales and ecosystem growth, is stepping down.

Under the latest strategic adjustment, the business unit will focus more on pursuing high-quality growth and building a better cloud ecosystem to attract more independent software developers. Also, the sales organization and regional sales ecosystem will be improved.

Cloud computing is seen as Alibaba’s main profit driver in the long run, although it currently accounts for about 8% of the company’s total revenue. The e-commerce giant reported a 10% rise in revenue for the three months ended December 31, the slowest sales growth since the company went public in 2014. Revenue from its cloud division was relatively positive, up 19% compared to the same period in 2020.

The Hangzhou-headquartered company is looking to expand its cloud business further overseas. In October last year, it announced plans to open its first data centers in South Korea and Thailand in 2022.

Local data centers can help businesses in those countries access Alibaba’s cloud services, which could also help the Chinese giant compete with Amazon and Microsoft on a global scale.

China’s cloud services industry is growing rapidly, with the market growing 33% in the fourth quarter compared to last year, according to Canalys. In the domestic market, Alibaba Cloud maintained its No. 1 position throughout the year, followed by Huawei Cloud and Tencent Cloud.

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