Alibaba Chief Takes Charge Of Alibaba Cloud Following Recent Outage

  • Alibaba Group Holding Limited (NYSE: BABA) made a few major organizational reshuffling at Alibaba Cloud per Jack Ma's policy to ensure the company always stays agile in the fast-changing internet space.
  • Jeff Zhang, former president of Alibaba Cloud Intelligence, departed while Alibaba's CEO Daniel Zhang became the acting president, TechCrunch reports.
  • Alibaba Cloud is the third-largest public cloud infrastructure provider after Amazon.com Inc AMZN AWS, and Microsoft Corp MSFT
  • The CEO also took charge of DingTalk, Alibaba's enterprise communication app that worked closely with the cloud unit.
  • Just under two weeks back, Alibaba Cloud's Hong Kong servers suffered a severe outage that shut down many regional services, including significant crypto exchange OKX
  • Jeff will focus his attention on Alibaba's primary research institute Damo Academy. 
  • Jeff was instrumental in designing the system infrastructure for Taobao, one of the biggest online marketplaces.
  • At Damo, he will continue to be in charge of IoT initiatives and Alibaba's proprietary chip development team T-Head, which assumed new importance since U.S. sanctions on China.
  • The cloud arm battled sluggish growth in recent quarters as its crucial sources of overseas income took a hit. 
  • With rising geopolitical tensions, Chinese internet firms expanding abroad turned to foreign providers like AWS.
  • Alibaba Cloud reportedly took a big hit after TikTok moved its data off its service.
  • Domestically, Tencent Holding Ltd TCEHY appeared as a big rival. Huawei and Tianyi, the cloud offshoot of state telecom giant China Telecom got a headstart in supporting government and public infrastructure.
  • Price Action: BABA shares traded higher by 0.63% at $87.75 in the premarket on the last check Thursday.
  • Photo by Fooksou Lamimo via Wikimedia Commons
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