Alibaba to infuse $28 billion to boost its Cloud Infrastructure

Alibaba Cloud has now revealed that it will invest around $28 billion in the coming three years on its Cloud infrastructure sector, reports Bloomberg.

The company will focus on technologies which include servers, network, chips, operating systems, and expect to deploy its latest technologies in the next-gen data centres in the coming years.

Alibaba Cloud has a data centres available in 63 zones, out of which two are in India, across the 21 regions serving customers worldwide. It has more than 70 compliance and security accreditation's across the globe, noted the report.

Executive Opinion

Bloomberg Intelligence analyst Vey-Sern Ling said of the cloud division, said, "The key focus in the medium term is to gain scale, in customers, infrastructure and product offerings. Profitability is not a near-term focus. The amount they are spending over three years should be just about equivalent to the revenue they generate, keeping the segment at a near-break-even level as it has been for the past few quarters."

In a Bloomberg report President of the Alibaba Cloud Intelligence division, Jeff Zhang, said, "By increasing our investment on cloud infrastructure and fundamental technologies, we hope to continue providing world-class, trusted computing resources to help businesses speed up the recovery process, and offer cloud-based intelligent solutions to support their digital transformation in the post-pandemic world."

More about the Alibaba Cloud

In March this year, Alibaba offers its Cloud-powered AI Solutions for COVID-19 Diagnostics.

Alibaba has also made a strategic partnership with the Znet Technologies for the distribution of its cloud-managed and infrastructure services in India. The strategic deal between the Znet and Alibaba Cloud is expected to bring around $500 billion giant cloud products and solutions into the country.

Across the globe, Alibaba Cloud competes with the Google Cloud, Microsoft Azure, Amazon Web Services among others in the cloud domain.