Alibaba is well-known for their on-line platform, permitting companies and shoppers all around the globe to purchase a variety of merchandise, primarily in bulk, from China. However over time Alibaba has expanded into many different areas of enterprise together with cloud computing, funds and leisure.
Salesforce has tried to break into the Chinese language market, in 2007. Launching Salesforce China Edition, aimed toward small to medium-sized companies. Regardless of this, Salesforce has the minority of its revenues from the Asia Pacific areas (10% Asia Pacific, 20% Europe, 70% Americas).
Following the lead of Amazon, it’s no wonder that Alibaba has expanded into the cloud computing market. “They [Alibaba] currently hold over half of the market which is estimated to grow 55% to $331.2 billion in three years, according to Gartner. Alibaba’s cloud business has been generating triple-digit revenue growth over the past three years, outpacing the industry.” – Bloomberg.
Alibaba will act as the exclusive provider of Salesforce to enterprises and prospects in China, Hong Kong, Taiwan, and Macau. This may strengthen Alibaba’s offerings to the enterprise market, as they do not presently have an equal product. For Salesforce, this provides them a key partner in a comparatively untapped market, to the potential that China has to supply.
Learn the official announcement here.