back to article Alibaba says demand for cloud has dipped – which improved its profits

Chinese tech giant Alibaba has reported tiny revenue growth, but a 106 percent surge in earnings for its cloud services, despite a marked slowdown in demand. The two outcomes are linked: CEO Daniel Zhang yesterday told investors who tuned into a Q2 earnings call "The growth rate was negatively impacted by the normalization of …

  1. Anonymous Coward
    Anonymous Coward

    The pendulum is swinging back

    a bit.

    We started the year with quite a few subscriptions to cloudy services. Plus running own servers in a remote data center.

    However as each vendor decides to "improve" and "streamline" their offerings - and generally not provide what we need - Plus upping the licensing model - it's been seriously more economic to pull those services into self hosted FOSS systems.

    But we're lucky we hung onto the skills you need to do that.

    Some companies are now locked into a double digit price rise, ever dwindling functionality and vendor lock in because they've trusted it all to someone else.

    1. Youngone Silver badge

      Re: The pendulum is swinging back

      Some companies are now locked into a double digit price rise, ever dwindling functionality and vendor lock in because they've trusted it all to someone else.

      That's us baby! We've already had a price increase from Microsoft this year and they've told us we're getting another soon. "Just as soon as they decide how much" is what I was told.

      We could tell them to bugger off but they're hosting most of our data. Nobody could have forseen that though. Nobody.

  2. Doctor Syntax Silver badge

    Reduced demand brings bigger profits? Every cloud has a silver lining.

  3. Anonymous Coward
    Anonymous Coward

    Open sourcing it means what?

    Alibaba's ... decision to open source its own AI models to drive engagement and consumption.

    As in Meta-flavoured Open Source? Does it mean the software without data, or the learned model as a software blob to run on their cloud, or something else?

    At any rate, any flavor of open sourcing is better than nothing.

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