{"id":21787,"date":"2023-03-30T09:07:27","date_gmt":"2023-03-30T08:07:27","guid":{"rendered":"http:\/\/healthmedicinet.com\/business\/alibaba-six-way-split-will-see-aliyun-cloud-division-become-a-separate-company\/"},"modified":"2023-03-30T09:07:27","modified_gmt":"2023-03-30T08:07:27","slug":"alibaba-six-way-split-will-see-aliyun-cloud-division-become-a-separate-company","status":"publish","type":"post","link":"https:\/\/healthmedicinet.com\/business\/alibaba-six-way-split-will-see-aliyun-cloud-division-become-a-separate-company\/","title":{"rendered":"Alibaba six-way split will see Aliyun cloud division become a separate company"},"content":{"rendered":"

Chinese Big Tech<\/a> company Alibaba has announced a massive reorganisation which will see its business split into six separate organisations, including a newly independent cloud unit. The move could coincide with the Chinese government taking a more relaxed to the country\u2019s tech giants after years of stringent regulation.<\/p>\n

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Alibaba will split into six companies, it has been announced. (Photo Announced overnight, the Alibaba split comes as founder Jack Ma returns to China after two years living abroad. <\/p>\n

Alibaba split: How the Chinese conglomerate will be divided<\/h2>\n

Alibaba is one of the world\u2019s largest companies and was valued at $231bn when it listed in New York in 2014. However, since 2020 the Chinese government has been cracking down on Big Tech companies, with regulators imposing controls on Alibaba and rivals such as Tencent, which have dented their revenues. Alibaba\u2019s shares, which had lost 70% of their value since 2020, rose 14% overnight on news of the restructuring.<\/p>\n

Though primarily an e-commerce business, the company has expanded into cloud and other IT services, as well as artificial intelligence and fintech. <\/p>\n

The split will create six separate businesses, with the Cloud Intelligence Group \u2013 comprising cloud<\/a> and AI services, as well as the company\u2019s Slack-alike communication platform, DingTalk \u2013 going it alone. The business will be led Elsewhere, the Alibaba split will create the Taobao Tmall Business Group, focusing on e-commerce, the Local Services Group, the Global Digital Business Group that incorporates the company\u2019s international e-commerce brands, Cainiao Smart Logistics, and a Digital Media and Entertainment Group.<\/p>\n

Alibaba\u2019s cloud ambitions<\/h2>\n

All the new companies will be free to seek outside investment and potentially IPO. They will be able to make their own appointments too, though Alibaba plans to retain control of Taobao.<\/p>\n

\u201cThe original intention and fundamental purpose of this reform is to make our organisation more agile, shorten decision-making links and respond faster,\u201d Zhang said<\/a>.<\/p>\n

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News of the reorganisation is likely to please Chinese authorities, who had been concerned about the monopoly power of the likes of Alibaba and Tencent, leading to tight controls on the businesses. But it has recently changed tack, perhaps in the face of its escalating tech trade war with the US<\/a>, handing more influence to private companies. <\/p>\n

Last week a plan for the Chinese semiconductor sector<\/a>, which will give leading manufacturers more control of RD budgets and access to government funds, was announced, and the government has also signalled it is happy it is now able to effectively regulate \u201cplatform economy\u201d companies such as Alibaba.<\/p>\n

The split could also help boost Alibaba\u2019s cloud ambitions. Its Aliyun cloud division is one of the largest providers in the world Aliyun operates 15 regions outside China, mainly in Asia, but has struggled to make an impact, perhaps in part due to the widespread distrust of Chinese companies following the high-profile problems of businesses like Huawei and TikTok. <\/p>\n

Tech Monitor <\/em>reported in 2021 that Chinese cloud providers are looking to emerging markets<\/a> such as Africa as places where they can get ahead of the hyperscalers. The new Alibaba Cloud Intelligence Group may continue to target these areas as part of its growth plans.<\/p>\n

Read more: China\u2019s generative AI revolution is only just beginning<\/a>
\n<\/h3>\n","protected":false},"excerpt":{"rendered":"

Chinese Big Tech company Alibaba has announced a massive reorganisation which will see its business split into six separate organisations, including a newly independent cloud unit. The move could coincide with the Chinese government taking a more relaxed to the country\u2019s tech giants after years of stringent regulation. Alibaba will split into six companies, it […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21787","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts\/21787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/comments?post=21787"}],"version-history":[{"count":0,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts\/21787\/revisions"}],"wp:attachment":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/media?parent=21787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/categories?post=21787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/tags?post=21787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}