Alibaba 's BABA cloud computing arm is leaving no stone unturned to bolster presence in the cloud market on the back of its robust product portfolio.
Recently, the company has rolled out a set of nine products based on the emerging technology of Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT) to cater to the rising demand for cloud architecture and data analytics and security in the retail industry.
The products are namely - Data Lake Analytics, Anti-Bot Service, Dedicated Host, Hybrid Backup Recovery, Smart Access Gateway, Elasticsearch, Apsara Stack, IoT Platform and PAI (ML platform for AI).
These products will assist the retail clients of the company to implement its "New Retail" concept in their business operations.
Further, Alibaba is well poised to reap benefits from the growing retail industry with these products as it will allow the company to fortify presence in this industry.
Per the latest data from Mordor Intelligence, the global retail market is expected to grow at a CAGR of 5.3% between 2018 and 2023 and to reach $31880.8 billion by 2023.
Expanding Product Portfolio
The latest move bodes well for the Alibaba's strong focus toward the expansion of its product portfolio which will help it in gaining momentum in the cloud industry.
Moreover, the new product suit will not only help the company in fortifying presence in the retail industry but also in the e-commerce space, thanks to its New Retail concept.
Recently, Alibaba has also signed a Memorandum of Understanding (MoU) with Siemens per which the latter will roll out its IoT products in China by utilizing former's robust cloud infrastructure. This will strengthen the services portfolio of the company.
Further, the company unveiled ET Agricultural Brain in the last reported quarter, which is based on the power of artificial intelligence ("AI") to improve the agricultural productivity of China.
We believe the company's robust and innovative portfolio will aid the adoption rate of Alibaba Cloud. This will improve the customer base of the company which will drive its top-line growth.
Alibaba Group Holding Limited Revenue (TTM)
Alibaba Group Holding Limited Revenue (TTM) | Alibaba Group Holding Limited Quote
Alibaba's expanding solutions portfolio bodes well for its improving market share and competitive position in the cloud market.
However, rising competition from big players in the market remains a major concern. Growth of Alibaba Cloud has been hindered by the dominance of Amazon's AMZN AWS and Microsoft's MSFT Azure.
Further, Alphabet's GOOGL Google Cloud which is also gaining traction in the cloud market over the past few quarters remains a concern for the Alibaba's market share growth.
We believe it will take time for Alibaba to enjoy the returns on its growing investments, given the dominance of three above mentioned companies.
Currently, Alibaba carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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