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Alibaba to help more foreign tech suppliers enter China through cloud computing initiative

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Yu Sicheng, general manager of Alibaba Cloud's global operation, speaks at an event in Beijing on Tuesday. Photo: SCMP Pictures
Phoenix Kwong

Alibaba Cloud (AliCloud), a subsidiary of e-commerce giant Alibaba Group, is gearing up to help more overseas technology companies enter the mainland Chinese market through a new initiative called “AliLaunch”.

Yu Sicheng, the general manager of AliCloud’s global operations, said at an event in Beijing on Tuesday that the company plans to sign up to 50 technology partners over the next 12 months through the programme.

“The market demand is tremendous in terms of getting foreign companies’ highly developed applications and services delivered to Chinese consumers over the cloud,” Yu said.

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But Beijing’s efforts to tighten control over internet content and implement stringent cybersecurity rules have dampened the ability of foreign cloud companies to sell their software and services online in the world’s third-largest technology market.

Cloud computing enables companies to buy, sell, lease or distribute online a range of software and other digital resources as an on-demand service, just like electricity from a power grid. These resources are managed inside data centres. “Cloud” refers to the internet as depicted in computer network diagrams.

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Yu said AliLaunch will assist foreign cloud companies overcome common obstacles, such as scalability and technological compatibility, as well as help them pursue joint ventures and strategic marketing partnerships.

The initial batch of 11 technology partners signed up by AliCloud include SAP, the world’s largest supplier of business management software. Photo: EPA
The initial batch of 11 technology partners signed up by AliCloud include SAP, the world’s largest supplier of business management software. Photo: EPA
More importantly, “we can help them understand and comply with local security laws”, Yu said.
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