Cloud growth attributed to public and hybrid cloud growth.
Chinese e-commerce giant, Alibaba has reached US$1 trillion in gross merchandise volume across its digital economy for fiscal year, 2020.
An area that has done well during this fiscal financial year is Alibaba Cloud, which grew its revenue by 58 per cent year-over-year to RMB12.2 million (US$1.7M) in the quarter ended March 31, 2020.
For the fiscal year 2020, Alibaba Cloud grew 62 per cent to RMB40,016M (US$5.7M). This was primarily driven by increased revenue contribution from both our public cloud and hybrid cloud businesses.
Daniel Zhang chairman and chief executive officer at Alibaba Group stated it maintained its leadership position in Asia Pacific’s cloud computing market by “developing technology and business solutions” that enable the digital transformation of businesses across industries in the public and private sectors.
“According to Gartner (April 2020), Alibaba Cloud is the largest cloud computing service provider in the Asia Pacific region, as measured by market share for Infrastructure as a Service and Infrastructure Utility Service,” stated Alibaba.
Maggie Wu chief financial officer of Alibaba Group said despite a challenging quarter due to reduced economic activities considering the COVID-19 pandemic in China, Alibaba
“achieved annual revenue guidance of over RMB500 billion”.
“Revenue growth of 35 per cent of year-over-year was driven by solid performance of our domestic retail businesses as well as robust cloud computing revenue growth,” she said. “Our adjusted EBITDA grew 29 per cent year-over-year, reflecting our discipline in allocating resources to key strategic growth areas while optimising costs and improving efficiency. Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March.
According to Wu, based on the current view of Chinese domestic consumption and enterprise digitisation, Alibaba expects to generate over RMB650 billion in revenue in fiscal year 2021.