Alibaba Cloud profits as the end-users shift from IaaS to AI

Alibaba Cloud profits as the end-users shift from IaaS to AI

Alibaba Cloud, the most prominent cloud service provider for China, is now edging closer to market leader position and high profitability. The potential future growth will depend upon users shifting the services stack to analytics and artificial intelligence workloads. The ecommerce giant saw increased sales due to changing shopping habits.

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The Alibaba cloud unit is analogous to Amazon Web Services’ role to Amazon. Alibaba considers Alibaba Cloud as a potential profit engine. The organization expects the engine to turn profitable by the end of FY 2021. Currently, the cloud unit shows a promising growth of 60% with strategies that target new workloads and industries.

Source: Zdnet