Alibaba Cloud set to invest $1 billion in overseas partnerships

Alibaba Cloud is set to invest $1 billion over the next three years to support its partners’ “technology innovation and market expansion”.

The investment from the Chinese tech giant’s cloud computing division will consist of a mix of financial and non-financial incentives, including “funding, rebates and go-to-market initiatives.”

In addition, Alibaba Cloud is also set to launch a “regional accelerator” program to provide its partners operating in different markets with a localized business collaboration model.

So what is the big picture?

Alibaba already controls a fairly large chunk of the cloud storage market, according to Gartner statistics (opens in a new tab)it was second only to Microsoft and Amazon with its 9.5% market share in 2021.

The division already has around 11,000 partners worldwide, including Salesforce, VMware, Fortinet, IBM and Neo4j.

Alibaba Cloud was already actively looking to expand its international footprint.

As part of its “Global Delivery and Service Program”, it unveiled three Customer Service Centers in 2022, located in Malaysia, Portugal and Mexico, to support international customers in cloud adoption.

But unfortunately for investors, Alibaba’s expansion outside of its core market is under regulatory scrutiny.

In 2022, the US government is said to have reviewed Alibaba Cloud to determine whether or not it poses a national security risk.

According to the report of Reuters (opens in a new tab)the Biden administration’s investigation focused on how the company handled US customer data and whether the Chinese government could access US intellectual property.

But it’s not just the cloud computing market that the Hangzhou, China-based company aims to take over.

Alibaba has set up a subsidiary, called Lingyang Intelligent Service Company, which it says will offer “enterprise digital intelligence services”.

The new business unit could potentially compete with Microsoft, Oracle and SAP in business intelligence.