Alibaba, one of the Cloud Computing source for Chinese E-Commerce giant E-Commerce became profitable for the first time. The profit was made for the December quarter. The company itself announced the profit. Company is in the business since 2009.
The firm’s cloud unit achieved positive adjusted EBITA (earnings before interest, taxes, and amortization) throughout the quarter. The milestone is partially a results of the “realization of economies of scale,” said Alibaba.
Due to Covid-19 Pandemic the cloud technology became the boon all around the world. People used digital methods for most of the things. Be it Food delivery, or paying in restaurant, people used digital methods. With this, the companies revenue increased to $2.47 for the December’s quarter.
CEO Daniel Zhang in August said “We don’t want to just provide cloud in terms of infrastructure services.” Also in previous interviews CEO Zhang suggested that the key strategy to increase Alibaba cloud is the integration of cloud into Alibaba’s enterprise chat app Dingtalk, that the corporate hopes will drive industries across the board onto cloud services.
If we have a look towards cloud market it is going around $15 to $20 Billion in size and U.S is eight times of this market. According to this third-party studies China still is in initial phase of cloud market technology.