Recently, Alibaba Cloud announced that it will increase the price of cloud products on its official website across the board, with an average price reduction of more than 20% and a maximum reduction of up to 55%. This is the largest price reduction in Alibaba Cloud's history, covering more than 100 products and more than 500 product specifications, involving all core products such as computing, storage, and databases.
Alibaba Cloud's price reduction strategy is aimed at enabling more enterprises and developers to use advanced public cloud services and accelerate the popularization and development of cloud computing in all walks of life in China. According to Liu Weiguang, senior vice president of Alibaba Cloud Intelligence Group, price reduction is not a short-term behavior, but a long-term strategic choice based on the cloud computing business model. Cloud computing has network effects and scale effects, the more customers, the lower the cost, and the cheaper the product.
According to statistics, the size of the server stock in the Chinese market is comparable to that of the United States, but the penetration rate of public cloud is much lower than that of the European and American markets. This means that there is still huge growth potential in China's public cloud market. Alibaba Cloud's price reduction is not only to further expand the user base and scale, improve the market penetration rate of cloud computing, but also to promote the rapid development of China's cloud computing industry.
In the future, Alibaba Cloud will continue to bring annual price reductions for core cloud products, lower the threshold for cloud migration, and increase the free quota of a number of essential cloud products to benefit small and medium-sized enterprises. This strategic move will undoubtedly inject new vitality into China's cloud computing industry and promote its wider and deeper application.