Alibaba Cloud's revenue will reach 5 billion dollars in 2019
The research paper released by Goldman Sachs pointed out that AWS's real competitor is not the United States, but Alibaba from China.
Goldman Sachs pointed out that Alibaba's cloud computing service, Alibaba Cloud, will have revenue of $5 billion by 2019, and its valuation will reach $42 billion, while AWS's valuation will be $178 billion.
In contrast, Alibaba Cloud is still small. However, this is enough to make Alibaba Cloud the second company in the field of cloud computing infrastructure (IaaS market). The research paper said: "With such value, AWS and Alibaba Cloud will become the world's two largest infrastructure technology companies."
Goldman Sachs estimates that Alibaba Cloud's IaaS and PaaS revenues in the past 12 months were about $600 million, similar to Google's cloud computing business performance estimates for the same period.
But what is daunting is the growth rate of Alibaba Cloud. According to the estimates of IaaS and PaaS revenue in 2016 given by Goldman Sachs, Alibaba Cloud has the fastest growth rate of revenue. At a growth rate of about 140%, Alibaba Cloud surpassed Amazon AWS, Microsoft Azure, Google Cloud, etc.
Goldman Sachs is not the only Wall Street investment bank that has noticed Alibaba Cloud's great potential. Baird Equity Research pointed out in a recent research paper that Alibaba Cloud is still "underestimated" by many investors. "Alibaba is a leader in China's cloud computing market, benefiting from the deep cultivation of regional markets, the experience of operating Alibaba's core market platform, and the advantages of Taobao and Tmall in the SME market."
In the last quarter's financial report, Alibaba Cloud maintained a strong momentum, with a revenue of 1.243 billion yuan, up 156% year on year, and once again became a global benchmark for cloud computing growth. This is also the fifth quarter that Alibaba Cloud led the global cloud computing growth, highlighting the strong vitality after entering the outbreak cycle.
Since the second quarter of last year, Alibaba Cloud has maintained a triple digit growth, with an annual growth rate of 138% in fiscal year 2016, which has become Alibaba's new growth pole. This quarter's financial report also disclosed that Alibaba Cloud's number of cloud computing paying users increased significantly year on year to 577000.
Morgan Stanley's previous research report believed that Alibaba Cloud, Alibaba's cloud computing business, was rising rapidly, and its separate valuation had reached $39 billion.
The bank estimated that Alibaba Cloud's revenue will exceed 18.5 billion dollars in the next five years. By 2020, Alibaba Cloud will become one of the most important revenue pillars of Alibaba Group and the third growth pole after e-commerce and payment.
