The outbreak of COVID-19 has had a deep impact on the world market – resulting in Microsoft services seeing a 775% increase in demand in the wake of COVID-19. Alibaba is now demonstrating that it is willing to adapt its investments accordingly, as it plans a new $28/£22.5 billion investment in cloud services.
According to Reuters, Alibaba Group Holding Ltd is planning to invest 200 billion CNY – around £22.5 billion – in cloud services over the next three years. Alibaba is planning to use the funds for “semiconductor and operating system development as well as building out its data centre infrastructure.”
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According to the article from Reuters, Jeff Zhang, Alibaba Cloud Intelligence president, says that the recent COVID-19 outbreak “has posed additional stress on the overall economy across sectors” and the company hoped the investment would help businesses “speed up the recovery process”.
Cloud services are far from a new concept to the Chinese company, as according to research firm Canalyst, Alibaba had a convincing 46.4% share of the domestic Chinese cloud market in Q4 2019. Now Alibaba is looking to further expand its cloud services. It remains to be seen what effects the investments will have on the Chinese market, as well as the global market.
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