Alibaba’s cloud computing sector has grown rapidly over the years as competition in the industry intensifies and political issues undermine Chinese companies’ ability to acquire business abroad and government contracts domestically. After that, the pressure is increasing.
Alibaba investors are using cloud computing to drive significant growth amid intensifying competition in the company’s major e-commerce business. However, in recent months, the cloud unit has broke up with its major customers and has been given a cold shoulder by some Chinese government clients and has reviewed its organizational structure, people familiar with the matter said.
Alibaba Group Holding Co., Ltd.
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Last week, we reported that cloud computing revenue was up 37% year-on-year. This is the slowest quarterly growth since it was published on the New York Stock Exchange in 2014. Loss of international business of major Chinese internet clients due to “non-product related requirements”.
The client is ByteDance Ltd., the owner of the social video app TikTok, and some have said it has terminated its contract to store international data on Alibaba Cloud. When ending the relationship, they said ByteDance bought the server from Alibaba.
People said the move reflects Beijing-based ByteDance’s desire to meet its rapidly expanding unique cloud computing needs. One said the growing US pressure on the use of Chinese-owned computer services to store American data accelerated the process….
