Alibaba Cloud plans to invest $1 billion in international alliances

Over the next three years, Alibaba Cloud will spend $1 billion to encourage “technology innovation and market expansion” among its partners.

The cloud computing division of the Chinese tech giant will invest in the company in exchange for both monetary and in-kind benefits, such as “funding, rebates, and go-to-market initiatives.”

Alibaba Cloud is also planning to introduce a “regional accelerator” programme to better serve its partners in different markets through a more tailored approach to business collaboration.

So, what is the bigger picture here?

About 11,000 companies around the world are already partners with the division. These companies include Salesforce, VMware, Fortinet, IBM, and Neo4j.

Already, Alibaba Cloud had begun taking steps to broaden its presence abroad.

As part of its “Global Delivery and Service Program,” it will open three Customer Service Centers in Malaysia, Portugal, and Mexico in 2022 to assist customers in those countries as they transition to the cloud.

Regulators are keeping an eye on Alibaba as it expands beyond its core marketplace, which is bad news for investors.

It was reported in 2022 that the United States government was investigating Alibaba Cloud to see if it posed a threat to national security.

Reuters (opens in a new tab) reports that the Biden administration investigated the company to see if the Chinese government was able to access US intellectual property and how the company handled the data of US clients.

The company’s headquarters are in Hangzhou, China, but it has global ambitions.

Lingyang Intelligent Service Company is a new Alibaba subsidiary that will provide “enterprise digital intelligence services,” as the parent company puts it.

In the business intelligence market, the new division may compete with giants like Microsoft, Oracle, and SAP.