ALIBABA Cloud’s recent announcement that they have taken the third spot among the world’s Infrastructure as a Service (IaaS) providers is no surprise, given that it’s market share went up 28.2% in 2019.
ALIBABA Cloud, is the data intelligence backbone of Jack Ma’s Alibaba Group. Aside from that announcement, it also said that based on the report by leading global research and advisory firm Gartner, it continues to be the biggest in the Asia Pacific region, a spot it has held for the third year in a row since 2016, bumping off market leader Amazon, in just two years since it introduced its own marketplace of services in 2014. Alibaba Cloud first went online in September 2009.
Amazon Web Services (AWS) retained the No. 1 vendor in the IaaS space, followed by Microsoft, then Google and IBM. Despite the pandemic, the worldwide public cloud services market is still forecast to grow 17% in 2020 to total $266.4 billion, up from $227.8 billion in 2019, according to Gartner, Inc.
“At this point, cloud adoption is mainstream,” said Sid Nag, research vice president at Gartner. “The expectations of the outcomes associated with cloud investments therefore are also higher. Adoption of next-generation solutions are almost always ‘cloud-enhanced’ solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities.”
Industry experts believe that telecommunications, Internet service providers, Cloud and data center activities will grow during the time of the COVID-19 pandemic because people working from home demand more from these services.
Alibaba’s market share in the global IaaS market climbed to 9.1% in 2019, up from 7.7% the year earlier, said the firm. The Gartner report, named Market Share: IT Services, 2019, also showed that in the Asia Pacific region, Alibaba’s market share increased to 28.2% last year, from 26.1% in 2018.
“We believe our strong growth and leading market position is testament to the hard work of our teams and the support of our many customers and partners around the world, to whom we are truly grateful,” Jeff Zhang, president of Alibaba Cloud Intelligence said in a statement.
“We look forward to continuing our work, which enables our global customers and partners to expedite their digital transformation journeys through our scalable, robust and secure infrastructure, advanced analytics capabilities and thriving ecosystem.”
The cloud service currently has 63 availability zones in 21 regions, serving millions of customers across the globe. It has more than 70 security and compliance accreditations worldwide.
Market leader AWS had as many in 2017 and Alibaba Cloud is quickly overtaking most areas especially in the Asia Pacific region. The expansion however also offers its enhanced cloud services to more clients across the globe because of the interconnectivity of the system.
“To us, the report once again demonstrated Alibaba Cloud’s commitment to our global strategy to expand on our worldwide presence by enhancing our global infrastructure and network.” Zhang said in the video feed of the announcement.
It recently that it will invest an additional RMB200 billion (approximately US$28 billion) in the next three years on its cloud infrastructure, focusing on technologies including operating system, servers, chips and network.
Alibaba started off as an e-commerce platform and made the natural but quick transition to supply chain management solutions provider and then a public cloud provider. In November 2019, it managed $38.4 billion in transactions on a single day during Alibaba’s 11.11 Global Shopping Festival.
In addition to Gartner’s findings, an earlier report from market research and advisory firm International Data Corporation (IDC), showed that Alibaba Cloud recorded the fastest year-on-year revenue growth versus other global cloud service providers in the first half of last year. — with reports from Gartner, Alibaba Media Office