According to ** reports, at the end of December 2023, Alibaba Cloud is cutting the project-based business of customizing industry solutions for government and enterprise customers, and cutting the hardware integration business and reducing related personnel in the IoT (Internet of Things) business line. Some teams in the hybrid cloud division have been laid off by 30%. More than 50% of the IoT hardware integration business will be laid off, and the rest of the department will be dispersed and transferred to other businesses.
Project-based business refers to providing customized cloud computing solutions for customers according to their needs, including hardware, software, services and other aspects. The advantage of this business model is that it can meet the individual needs of customers and increase customer satisfaction and loyalty. However, the disadvantages of this business model are high cost, low efficiency, poor replicability, and difficulty in forming scale effects. As the cloud computing market becomes more mature and standardized, the competitiveness and profitability of project-based businesses are gradually declining.
Hardware integration refers to providing customers with access, management, and services for IoT devices, including sensors, gateways, controllers, and other hardware devices. The advantage of this business model is that it can provide customers with end-to-end IoT solutions, improving their convenience and experience. However, the disadvantage of this business model is that it does not match Alibaba Cloud's core business, requires a lot of manpower and material investment, and faces fierce competition from hardware vendors and system integrators.
Alibaba Cloud is reducing its project-based and hardware integration services to optimize its business structure, reduce inefficient and low-profit businesses, and release more resources and energy to focus on developing public cloud and AI businesses. Standardized cloud computing services are provided to all users through the Internet, including computing, storage, network, database and other services. It can achieve scale, standardization, automation and intelligence, improve the quality and efficiency of services, reduce the cost and efficiency of services, and attract more users and traffic.
At the same time, Alibaba Cloud is expanding recruitment in the public cloud business unit and AI department. Alibaba Cloud's recruitment website is currently recruiting about 500 positions, with more than 1,500 people. These positions involve various areas of public cloud, including products, technology, operations, sales, marketing, etc., as well as various directions of AI, including machine learning, computer vision, natural language processing, speech recognition, recommendation systems, etc. These roles are highly demanding, requiring relevant expertise, skills, and experience, as well as a passion and creativity for cloud computing and AI.
This adjustment is a follow-up to the adjustment of Alibaba Cloud's organizational structure at the end of November, and represents the subsequent development direction of Alibaba Cloud. That's all for this article, let's wait and see how Alibaba Cloud will develop in the future.