Alibaba‘s cloud computing and internet infrastructure business has been witnessing tremendous revenue growth over the past few quarters. For Q4 2016, this segment registered a 175% year-on-year revenue growth and this figure was 138% for the fiscal year 2016. (Read Alibaba Earnings: Mobile Growth In Retail, Cloud Computing Drive Results.) The company attributed this growth to an increase in the number of paying customers, which more than doubled over the past year to reach 500,000. Also a factor was an increase in the usage of the company’s more compact offerings, such as content delivery networks and database services. As Alibaba focusses on expansion of this business, especially beyond China, the cloud services segment can be the next growth driver for the company, with a consequent positive impact on its valuation.
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