Alibaba Cloud announced in a press release today that it will invest $28.2 billion into its cloud infrastructure over the next three years to ensure the successful functioning of its services. <\/p>\n\n\n\n
The investment has been prompted due to increased demand for services like video conferencing and live-streaming as businesses adapt to the COVID-19 pandemic.<\/p>\n\n\n\n
Jeff Zhang, president, Alibaba Cloud Intelligence said in the statement: \u201cThe COVID-19 pandemic has posed additional stress on the overall economy across sectors, but it also steers us to put more focus on the digital economy,\u201d <\/p>\n\n\n\n
Alibaba Cloud is currently the biggest cloud computing provider by market share in China and is the top cloud provider in the Asia Pacific market, according to Gartner<\/a>. <\/p>\n\n\n\n Their cloud offering for the rest of the world, and particularly in the western world, still trails U.S. giants Amazon and Microsoft despite their international push, according to Synergy Research<\/a>. <\/p>\n\n\n\n Zhang continued to say: \u201cBy increasing our investment on cloud infrastructure and fundamental technologies, we hope to continue providing world-class, trusted computing resources to help businesses speed up the recovery process, and offer cloud-based intelligent solutions to support their digital transformation in the post-pandemic world,\u201d.<\/p>\n\n\n\n Alibaba is not the only business increasing its attention and resources towards cloud technology with Insight Partners acquiring cloud backup and data management firm, Veeam, for $5 billion<\/a> back in the ideal time of early January 2020.<\/p>\n\n\n\n Although their cloud service only makes up 7% of its total business revenue, executives are putting a lot of focus and resources to increase their market share. <\/p>\n\n\n\n \u201cI think cloud will be … the main business of Alibaba in the future,\u201d Daniel Zhang, CEO and chairman, Alibaba said in a 2018 CNBC interview<\/a>. <\/p>\n\n\n\n