Alibaba Cloud will build Special Teams to Focus on Startups

Alibaba Cloud is set to launch a new distribution channel to tap into the opportunities presented by the growth in Indian startups and small businesses. Focus on Startups Tencent, the global competitor of Alibaba group has also recently planned to launch its own cloud services in India. In a move to counter the growing industrial competition, a senior Alibaba executive has explained why they plan to invest in India. Alex Li, General Manager of Alibaba Cloud Asia Pacific said that digitalisation will add $154 billion to the Indian GDP and so it is a great opportunity to do business in India in this phase of growth. He also pointed out how Alibaba cloud services has always aimed to empower businesses of all sizes in India.

Alibaba Special Teams to Focus on Startups

In the event of ‘India Eco Summit’ the company has launched its new distribution network and encouraged its partners to provide detailed technical knowledge to its customers. For this new channel strategy, Alibaba has also said that it will build specialized teams to focus on different segments in the highly diversified Indian market such as start ups, online business etc. It also plans to train 1000 sales and technology personnel in the coming six months to strengthen its new distribution network. In India, Alibaba Cloud already provides cloud computing products and services to its clients in e-commerce, gaming, media, retail and IoT sectors through a large network of distributors.

Alibaba is new to the Indian market, officially launched in March 2018 with a data center in Mumbai to address the growing cloud computing needs of small and big businesses in India. Google Cloud is also a known competitor in the cloud computing industry. The global tech giant is also planning to scale its operations in India due to overwhelming demand in retail, media, entertainment, and gaming sectors as explained by Rick Harshman, MD, Asia-Pacific, Google Cloud.

Alibaba Cloud to Focus on Startups

As of now Tencent doesn’t have any concrete plans to roll out its own cloud service, however it is testing the Indian market. In the past few months, it has engaged in discussions with startups mostly in video and online live-streaming space which need cloud computing services. Alibaba Cloud will build Special Teams to Focus on Startups

According to a study by the International Data Corp (IDC), India ranks 3rd in the Asian Pacific region excluding Japan in spending on cloud services. India has spent around $2.12 billion on public cloud services, showcasing the potential of the Indian digital economy. A research by Gartner projects that Indian public cloud services revenue will grow to a total of $2.5 billion, up from $1.8 billion in 2017, a 37.5% in 2018. Another report by Forbes, added that $1.8 billion spent on cloud services in 2017 is expected to reach $4.1 Bn by 2020. Focus on Startups

Along with Alibaba group, other entrants like Tencent and established players like Amazon Web Services (AWS) also plans to scale its efforts to take advantage of the cloud service potential in India.

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