Alibaba.com to offer online software to small enterprises

Mainland e-commerce giant Alibaba.com aims to expand its operations by becoming an online supplier of business automation software to the country's small enterprises.

The company took a step forward yesterday by agreeing to pay 208 million yuan (HK$235.89 million) to acquire the business management software division of Alisoft Holding, a subsidiary of Hangzhou-based parent Alibaba Group.

That transaction, expected to close on September 1, will transfer to Alibaba.com a suite of online business applications, more than 250 Alisoft employees, relevant computer equipment, trademarks, all customer contracts and associated liabilities.

Jack Ma Yun, the chairman of Alibaba Group and Alibaba.com, described the Alisoft division as a leading provider of 'software as a service' (SaaS) on the mainland. SaaS is a fast-growing segment of the information technology market that delivers, maintains and sells low-cost business software through subscriptions over the internet.

Research firm Analysys International says Alisoft commands more than 40 per cent of the mainland SaaS market.

'The [Alisoft] business management software products have been developed specifically to address the emerging needs of small businesses engaging in e-commerce,' said Mr Ma.