Alibaba promises its cloud computing clients $1 billion in an effort to spur growth.

Alibaba, the Chinese e-commerce behemoth, said it will spend $1 billion over the next three fiscal years to support its cloud computing customers as it attempts to resurrect growth following a long-term decline.

According to a news release issued by Alibaba on Thursday, the investment consists of “financial and non-financial incentives, such as cash, rebates, and go-to-market strategies.”

The business announced that it is also putting together a programme to assist its clients in tailoring their cloud computing needs to the regional market.

After Amazon and Microsoft, Alibaba is the third-largest cloud computing company in the world, according to Gartner. Although cloud computing is now a modest portion of Alibaba’s overall business, the management of the company views it as a vital part of future growth and profitability.

However, because to the return of Covid in the second-largest economy in the world and a harsher domestic regulatory environment, Alibaba has experienced an extraordinary slowdown in growth during the Chinese economic downturn. Alibaba announced its first flat revenue growth in recorded history for the April to June quarter.

Its cloud computing division’s revenue growth also decreased from the prior quarter.

The corporation with headquarters in Hangzhou, China, Alibaba has announced an investment as part of a larger effort to take its cloud computing operations global.

In order to attract clients in overseas markets like Singapore and Thailand, Alibaba has established new data centres in recent years.

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