Alibaba Cloud's USD1 Billion Market Share Is Set to Triple by 2019, Morgan Stanley Says
Yicai Global
/SOURCE : Yicai
Alibaba Cloud's USD1 Billion Market Share Is Set to Triple by 2019, Morgan Stanley Says

(Yicai Global) Dec. 15 -- Alibaba Group leads China's USD2 billion public cloud computing market, according to a report from Morgan Stanley.

Aliyun's 50 percent market share equals that of AWS, Azure, Tencent Cloud, Baidu Cloud and Huawei Cloud combined. Morgan Stanley analysts believe Aliyun's USD1 billion share will triple by 2019.

This dominant market share allows Aliyun to take advantage of economies of scale and offer price cuts to entice new customers. In fiscal 2016, the company lowered its product prices 17 times with the biggest cuts in mid-October, when a range of products were marked down by up to 50 percent.

Aliyun entered the cloud computing market in 2009, much earlier than Tencent Holdings Ltd. [HKG:0700] and Baidu Inc. [NASDAQ:BIDU], which missed the best window of opportunity to enter the industry. Huawei Technologies Co. launched cloud services to partner with its hardware technology, but the company is generally limited to private services.

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