Alibaba announced on Thursday that it will invest $1 billion over the next three fiscal years to help its cloud computing customers as the Chinese e-commerce giant looks to reignite growth after a historical slowdown.
The investment consists of financial and non-financial incentives, such as funding, rebates and go-to-market initiatives, according to Alibaba statement in a press release on Thursday.`
The company added that it is also setting up a program to help its customers localize their cloud computing business needs depending on the market.
Alibaba is considering as the world’s third-largest cloud computing player behind Microsoft and Amazon, according to Gartner.
Even though, cloud computing is a small part of Alibaba’s overall business currently, the company’s management find out it as a critical component to future growth and profitability.
Notwithstanding, Alibaba has seen an unprecedented slowdown in growth among Chinese economic malaise due to the resurgence of Covid in the world’s second-largest economy and a stricter domestic regulatory environment. In the April to June quarter, Alibaba reported its first flat revenue growth on record.
Revenue growth in its cloud computing business also declined from the previous quarter.
Alibaba’s investment announcement is also part of a broader boost by the Hangzhou, China-headquartered company, to increase its cloud computing business overseas.
Over the last few years, Alibaba has opened new data centres outside of China to gain customers in other markets such as Singapore and Thailand.
