Alibaba Cloud's future is still bright, despite US efforts to thwart its growth - Business Insider

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Because of the growth trajectory of China's cloud market, Alibaba Cloud will likely continue building momentum in the face of potential US sanctions

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.China's cloud market still has considerable room to grow, which will help Alibaba build momentum in the face of potential US sanctions.

Alibaba's cloud business helped the Chinese ecommerce giant post 34% year-over-year revenue growth for the ended June 30, 2020. Alibaba Cloud revenue grew 59% YoY to $12.3 billion yuan . The company — which offers infrastructure-as-a-service and platform-as-a-service — credited the revenue increase with higher average revenue per customer across its public cloud and hybrid cloud business units.

Alibaba Cloud's fortunes are tied to China's cloud market, which has the potential to grow at a much faster rate than the US cloud market. The US and China are the top two global cloud markets, but the US market is approximately eight times the size of China's, China's cloud market has much more room to grow, whereas the US cloud market is more saturated by comparison.

 

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