Chinese leading e-commerce giant Alibaba Holding Ltd (BABA) will be pumping in extra 200 billion yuan ($28 billion) in its cloud computing services Alibaba Cloud in the next three years.
Alibaba says following outbreak of deadly coronavirus, there has been an increasing demand in for business software. The company says the funds will be largely be used on semiconductors, development of operating systems and establishing its data center infrastructure.
In China, Alibaba remains a dominant player in cloud computing, during this period of coronavirus pandemic the company has been experiencing a rapid increase in demand for its software more so a workplace chat app used by both businesses and schools known as DingTalk.
DingTalks users have been experiencing massive lags and delays on the app during this pandemic time, Alibaba is attributing the issue to increased number of daily users of the platform.
The President of Alibaba cloud intelligence, Jeff Zhang issued a media briefing saying coronavirus pandemic has eaten into every sector of the economy but he remained hopeful the extra injection to the company’s cloud services will massively help the firm speed up recovery journey.
Alibaba’s cloud services has been playing a very crucial role in managing coronavirus in China, the cloud unit helped Hangzhou government in creating and rolling out a digital health-monitoring system which measures how much an individual has been exposed to the virus using a multiple color mechanism. The system was later rolled out in the entire country.