CEO Daniel Zhang of Alibaba made their future plan quite clear and its cloud computing. According to Mr. Zhang, who strongly believes that in the future everything will be powered by the cloud. A plan to build a cloud infrastructure under the new digital era and support all businesses, quoting that cloud could be the main business of Alibaba in the future.
Alibaba, an e-commerce giant has been making rapid strides in the cloud computing business. The cloud computing business saw a rise to $ 820 million at the end of the quarter a 90 percent year-on-year rise. Cloud computing accounted for 7 percent of total revenue that has increased from 5 percent last year.
Zhang during his interview mentioned that they have no hard revenue targets for the sector. Alibaba is expanding the cloud business into new territories outside China over past two and half years. It has opened new data centers across Asia and Europe. Trying to achieve a better digital footprint around the world, it recently opted for the data center in the U.K.
Alibaba is looking towards cloud computing to diversify its business beyond retail – Amazon did a decade ago. The company also announced its plan to design own artificial intelligence chips that can help servers to handle a huge amount of data and boost cloud division of Alibaba.