U.S. Markets close in 3 hrs 47 mins

Alibaba (BABA) Boosts Global Presence With New Cloud Products

Zacks Equity Research

Alibaba’s BABA cloud computing arm is leaving no stone unturned to bolster presence in the cloud market on the back of robust product portfolio.

Recently, the company rolled out a set of more than 10 products based on emerging technologies to empower businesses in this digital world.

The products include Alibaba Log Service (SLS), Support of “Bring Your Own Key” (BYOK), SaaS Accelerator, Smart Access Gateway (SAG) Software and Container Service for Kubernetes (ACK), among others.

These products will enhance customer experience on its cloud platform. With these new products, Alibaba aims to accelerate proven technologies and further develop a collaborative management platform across various businesses.

In addition, the company unveiled a new accelerator program connecting technology partners with the Alibaba ecosystem.

This move is inline with its strategy to accelerate companies’ digital transformation.

Expanding Product Portfolio

Alibaba has introduced several products and enhancements over the past few years. The company has invested in big data and AI technologies. It has expanded itself on a global basis, which is considered to be a key differentiator, thereby giving it a competitive advantage.

In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. We believe that Alibaba, given ongoing initiatives, is well poised to grab the growth opportunity.

The latest move bodes well for the company’s strong focus on expansion of the product portfolio, which will help it in gaining momentum in the cloud industry.

This move will help the company to gain a stronger foothold in the growing Asian region and beyond.

Recently, Alibaba added nine new partners to the EMEA Ecosystem Partner Program. The new partners include Cloud Temple, Equinix, EVA Group, Groupe Cyllene, GTI Software & Networking, PROJIXI Europe, SKALE-5, SMILE, and Xebia.

We believe the company’s robust and innovative portfolio will aid the adoption rate of Alibaba Cloud. This will improve its customer base, which will in turn drive top-line growth.

Bottom Line

Alibaba Cloud’s continued efforts toward global expansion are likely to boost the company’s competitive position in the rapidly growing cloud market against the likes of Amazon AMZN, Microsoft MSFT and Alphabet’s GOOGL Google.

Per the latest report from Research and Markets, the global cloud infrastructure services market is expected to witness a CAGR of 28.21% between 2018 and 2022.

All these cloud providers are trying to fortify their presence in the emerging countries, where there is a growing need for cloud infrastructure.

In the recently reported quarter, cloud computing revenues were RMB7.7 billion (US$1.2 billion), up 76% from the year-ago period, driven by an increase in average spending per customer.

We believe Alibaba’s expanding solutions portfolio bodes well for its improving market share and competitive position in the cloud market.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.