Alibaba Cloud’s next small goal: spend 180 million every day!

Latest update time：2021-09-02 23:03

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The latest data from international research firm Gartner is released

Alibaba Cloud ranks first in Asia Pacific market

Ranked third in the global market

Asia-Pacific and global market shares both increased

Alibaba Cloud's Asia-Pacific market share rises to 28.2%

Close to Amazon and Microsoft combined

Global market share increased to 9.1%

Further widening the gap with fourth place Google

Alibaba Cloud sets its next small goal

200 billion spent in 3 years

Develop new technologies and new infrastructure

That's 180 million per day.

(Image source: Alibaba Cloud)

Continue to squeeze Amazon's market share

Data shows that the global cloud computing IaaS market continued to grow rapidly in 2019, up 37.3% year-on-year, with an overall market size of US$44.5 billion. The global market 3A pattern is stable, but Amazon's market share has been squeezed by Microsoft and Alibaba Cloud, falling from 48% in 2018 to 45%. Alibaba Cloud ranked third, with the fastest market share growth , up from 7.7% in 2018 to 9.1% .

Compared with the global market, the Asia-Pacific market is growing faster, with the cloud computing market size increasing by 50% year-on-year. In the Asia-Pacific market, Alibaba Cloud ranks first, and its market share has further increased from 26% in 2018 to 28.2% , close to the total of Amazon and Microsoft. During the same period, Amazon's share fell from 18% last year to 17%.

Alibaba Cloud's revenue for the full fiscal year 2019 was 24.7 billion yuan. Alibaba first disclosed its cloud computing revenue in fiscal year 2015, when Alibaba Cloud's revenue was 1.271 billion yuan. By fiscal year 2019, Alibaba Cloud's revenue had increased 20 times.

(Image source: Alibaba Cloud)

200 billion yuan spent in 3 years

"Alibaba Cloud has confidence in the future and the digital economy. Cloud intelligence is one of Alibaba's core strategies. We have been investing in it for 11 years. We will not reduce investment due to the epidemic, but will increase investment. In the next three years, Alibaba Cloud will invest another 200 billion yuan to develop new technologies and new infrastructure. " Zhang Jianfeng, president of Alibaba Cloud Intelligence, said in an interview recently that these investments will be used for the research and development of major core technologies such as cloud operating systems, servers, chips, and networks , as well as the construction of future-oriented data centers .

Alibaba Cloud revealed that the latest research results of DAMO Academy XG Lab and Pingtou Ge will be first applied in Alibaba Cloud's next-generation data center. Core self-developed technologies such as FeiTian cloud operating system, Hanguang 800 chip, Shenlong server, self-developed cloud switch, high-performance low-latency network, and large computing system cluster will be deployed on a large scale in cloud data centers.

So far, Alibaba Cloud has deployed hundreds of cloud data centers in 21 regions around the world, and widely uses energy-saving technologies such as liquid cooling, water cooling, and wind power to reduce energy consumption. The scale of servers managed by Alibaba Cloud Fei Tian operating system is over one million, and another 200 billion yuan will be invested in three years, which means that the scale of Alibaba Cloud's data centers and servers will triple again, and it will sprint to become the world's largest cloud infrastructure.

Alibaba Cloud has been steadily gaining market share in China in recent years, accounting for 46% of the Chinese market in the fourth quarter of 2019. The COVID-19 pandemic has stimulated the market demand for cloud infrastructure and technology behind remote work. After the pandemic, enterprises and institutions will significantly accelerate their cloud migration.

(Image source: Alibaba Cloud Conference)

The next goal is to increase investment in "new infrastructure"

In just four months since the beginning of 2020, the new infrastructure has been mentioned by the central government seven times. Recently, the National Development and Reform Commission clarified the scope of new infrastructure for the first time, and mentioned that new infrastructure mainly includes three aspects: information infrastructure, integrated infrastructure, and innovative infrastructure, which pointed out the direction for new infrastructure.

Alibaba Cloud will naturally not miss this opportunity. In early March, Zhang Jianfeng said in an interview with the media, " Alibaba Cloud will fully invest in the new infrastructure of the digital economy , bring the technical capabilities that Alibaba has built over the past 20 years to the whole society, and help governments and enterprises build new infrastructure for the future."

As early as 10 years ago, Alibaba Cloud began to lay out new digital infrastructure, and the "City Brain" established in Hangzhou in 2016 was one of its early achievements. With the support of a data-based and intelligent city brain, Hangzhou was able to effectively control the outbreak and spread of the epidemic, and opened the West Lake Scenic Area in February, becoming the first city to open a large scenic area.

In addition to helping cities to conduct intelligent management, digital new infrastructure can also efficiently and accurately build various social governance systems. When Zhejiang's health code achieved remarkable results in epidemic prevention and control and precise resumption of work, the Alipay and Alibaba Cloud technical teams, under the guidance of the State Council's Office of Electronic Government Affairs, developed a national unified epidemic prevention and control health code system within a week.

“New infrastructure” must be built on the basis of 5G

On March 10, Alibaba DAMO Academy announced the official establishment of the XG Laboratory, which is committed to promoting the research of next-generation network communication technologies. At this stage, it mainly focuses on the collaborative research and development of 5G technologies and applications.

The DAMO Academy clearly disclosed six areas where 5G services will be the first to enter, namely ultra-high-definition video, online office, AR/VR, industrial Internet, smart logistics, and autonomous driving. These are the hot words heard recently, and are directly related to the new infrastructure that is popular in the current macroeconomic situation. Alibaba DAMO Academy also clearly conveyed the signal: looking to the future, "new infrastructure" must be built on the basis of 5G .

(Photo source: Huanqiu.com)

In fact, Alibaba also has its own advantages in entering 5G, and its focus is on cloud computing.

It can be said that Alibaba's cloud computing layout provides a foundation for 5G research. In the past decade, Alibaba has made comprehensive layouts and achieved large-scale applications in key technologies of cloud computing networks, covering high-performance networks, self-developed switches, intent-driven networks, programmable networks, traffic scheduling, etc., which will provide sufficient technical reserves for XG Labs. Alibaba Cloud's cloud data centers , cloud networks, and edge nodes around the world will provide extremely high-performance, low-latency, and highly reliable computing and storage resources for a large number of 5G terminal devices, providing favorable conditions for the implementation of 5G applications.

At present, cloud computing technology is maturing, cloud databases are beginning to rise, and enterprises are moving new applications to the cloud, which has increased the demand for data storage and computing analysis capabilities. 5G will bring a flood of data and promote the digital transformation of enterprises. By then, traditional databases will not be able to keep up with the pace of current enterprise development.

Both the academic and industrial communities believe that data analysis will not only exist in cloud server clusters or big data centers in the future. With the development of the Internet of Things, edge nodes located in cities, towns or homes will also take on some of the responsibilities of data analysis.

Previously, the traditional database market was dominated by foreign manufacturers such as Oracle, Microsoft, IBM, and SAP for many years, and Chinese local cloud companies had little say. Now, under the strong impact of 5G+ cloud computing, the landscape of cloud databases has quietly changed, and Alibaba Cloud has ranked third in the global cloud database market share.

Final Thoughts

In fact, in addition to Alibaba, other giants have also quietly laid out new infrastructure around 5G. Huawei Started from the aspects of "connection" and "computing" to develop new infrastructure. Tencent Has established the first 5G commercial experimental network of the world's Internet companies, and has launched a series of ultra-large-scale self-built data centers. Baidu Promote the deep integration of AI and industry, accelerate the intelligence of industry, and give play to the advantages of AI in the development of new infrastructure. The new track has been opened, who will take the lead?

The information in this article is referenced from Alibaba Cloud, Xinhuanet, Financial Times, Global Times, Reference News, etc.

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