Thursday, August 15, 2019

Alibaba's cloud revenue up 66% yoy to US$1.134 billion

Alibaba's cloud computing revenue grew 66% year-over-year to RMB7,787 million (US$1,134 million) during the June 2019 quarter, primarily driven by an increase in average revenue per customer.

Cloud services represented 7% of Alibaba Group's overall quarterly revenue.



During the June 2019 quarter, Alibaba Cloud launched over 300 new products and features, including those related to core cloud offerings, security, data intelligence and AI applications.

Alibaba said it is focusing on high value-added services while rationalizing offerings of commodity products and services.

In particular, Alibaba Cloud plans to expand SaaS offerings by working with SaaS partners to build an ecosystem to better serve enterprise customers.

During the June 2019 quarter, the company announced the Alibaba Cloud SaaS Accelerator, a solution that helps SaaS partners to build, launch and commercialize their offerings at scale
within the Alibaba Cloud SaaS marketplace. Alibaba Cloud offers these partners proprietary technologies such as AI applications, data analytics and software and development operations tools in order for them to deploy solutions for enterprise customers in various industries.


In May 2019, Alibaba Group reported that its cloud computing division generated revenue of RMB 7.726 billion (US$1.151 billion) during the March quarter, up 76% over the same period last year. Adjusted EBITA margin for the division was (2%).

In July 2019, Amazon reported Q2 2019 revenue of $8.381 billion for AWS, up 37% over the same period last year. Operating income for quarter was $2.121 billion. Operating margin was 26.2%. AWS is now on a $33 billion run rate.

Historical growth rate for AWS

2019 Q1 - 41%
2018 Q4 - 45%
2018 Q3 - 46%
2018 Q2 - 49%
2018 Q1 - 49%
2017 Q4 - 45%

See also