Caixin
Dec 30, 2022 06:25 PM
BUSINESS

Alibaba CEO Takes Charge of Key Cloud Business in Executive Reshuffle

Daniel Zhang. Photo: VCG
Daniel Zhang. Photo: VCG

What’s new:Chinese tech giant Alibaba Group Holding Ltd. has reshuffled much of its top management, according to an internal email, with Chairman and CEO Daniel Zhang taking charge of the company’s domestically dominant cloud business, which has been losing market share.

Daniel Zhang took over the division Thursday from Zhang Jianfeng, who stepped down. Zhang Jianfeng will remain chief of Alibaba’s research institute, the Academy for Discovery, Adventure, Momentum and Outlook, according to the email. He will continue leading the company’s T-Head chip unit and its Internet of Things department.

In other moves, Jiang Fang will be Alibaba’s new chief human resources officer, and Wu Zeming will be its new chief technology officer.

The context:Alibaba was the world’s third-largest infrastructure-as-a-service (IaaS) — a form of cloud computing services — provider by revenue in 2021, controlling 9.5% of the market, behind Amazon.com Inc. and Microsoft Corp., according to cloud business analysis firm Gartner Inc.

Alibaba remains the No. 1 player in China’s public cloud market, but its market share is slipping, from 38.6% in the first half of 2021 to 34.5% in the first half of 2022, according to data from consultancy IDC.

The company’s cloud business includes Slack-like platform DingTalk.

The company’s revenue is growing at a slower clip, from 10% during the three months that ended in June to 4% during the quarter that ended in September.

Alibaba’s cloud business generated about 10% of the company’s total revenue in the most recently reported quarter.

Related: Exclusive: Alibaba Set to Launch Its Own Cloud Server Chip

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Ward Zhou(nanyuzhou@caixin.com)and editor Michael Bellart(michaelbellart@caixin.com)

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