Alibaba Sees Cloud Computing Revenue Grow 29% YoY to $2,486 Million

Listen to this new article

The cloud computing revenue of Alibaba has increased by 29% Year-over-Year to $2,486 million (RMB16,051 million) in the June 2021 quarter, owing to strong growth in revenue from clients within the Internet, financial services, and retail industry market segments.

The supply of services such as elastic computing, database, storage, network virtualization, large scale computing, security, management, and application services, big data analytics, a machine learning platform, and IoT services provide the majority of cloud computing revenue for Alibaba.

Since the past quarter, year-over-year cloud revenue growth has slowed a bit for Alibaba, owing to revenue declines from a top cloud client in the Internet industry that has discontinued utilizing Alibaba’s foreign cloud services for their international company. According to Alibaba, this was due to non-product-related requirements by the client. Alibaba expects their cloud computing revenue to diversify more in the future, spanning clients and sectors.

Integration of DingTalk with Alibaba Cloud

DingTalk is a platform for corporate clients that allows them to create applications as well as collaborate. The integration of DingTalk and its adoption by Alibaba Cloud clients is a significant strategic objective for Alibaba in the coming years.

According to the Chinese hyperscaler, more clients have chosen both Alibaba’s Cloud and DingTalk after DingTalk was merged into Alibaba Cloud earlier this year including some major companies – such as Fosun Group, Shandong Energy and Mengniu Dairy.