Alibaba Cloud reports first-ever quarterly profit

The cloud achieved positive earnings before interest, taxes, and amortization (EBITA)

Alibaba Cloud

Alibaba Cloud report first-ever quarterly profit. Source: pexels.com

The Alibaba-owned cloud computing arm became profitable in the December quarter for the first time after 11 years.

This was the first time the milestone was achieved since 2009. It forms part of the achievement of economies of scale for the company.

Alibaba Cloud has dominated China’s cloud infrastructure market. Its market share also continues to grow globally. The cloud includes storage, security, IoT services, database, big data analytics, and machine learning.

In 2019, Amazon and Microsoft were the leading cloud companies closely followed by the cloud Behemoth. The infrastructure service provider has a 9% market.

Alibaba Cloud’s revenue grew to $2.47 billion. This can primarily be blamed on the increase in revenue due to an increase in online activities as a result of the pandemic.

While cloud computing contributed to 7% growth, commerce was the largest revenue source.

During the 11.11 Global Shopping Festival, Alibaba Cloud provided a secure public cloud infrastructure, which at its peak processed 583,000 orders per second.

Meanwhile, Alibaba Cloud’s closest competitor, Tencent Cloud had a 2.8% market as of 2019.

The China cloud market is expected to grow even further, with a $15 billion to $20 billion size range projection. The U.S Cloud market is approximately eight times that of China’s cloud.

The integration of Cloud into DingTalk, Alibaba’s enterprise chat app is a vital strategy for the growth of Alibaba Cloud.

We’ve reported that Alibaba and BMW signed a Memorandum of Understanding for a strategic partnership in Beijing.

SEE ALSO: