According to the report, an unusual decision is being made at Alibaba Cloud, which is only behind AWS and Microsoft as the third-largest public cloud infrastructure provider in the world. While Daniel Zhang, Alibaba's CEO, assumes the role of interim president, Jeff Zhang, the previous president of Alibaba Cloud Intelligence, is apparently going to step down.
However, the concern is being raised about the restructuring's timeframe. It is worth mentioning that a little less than two weeks ago, a massive disruption on Alibaba Cloud's Hong Kong servers forced the closure of numerous regional services, including the important cryptocurrency exchange OKX. One of the largest incidents among Chinese cloud providers in recent memory was the system outage, which for some clients lasted up to a day.
Interestingly, while Jeff will continue to be there, he will solely concentrate on Damo Academy, Alibaba's basic research center. Zhang has been a key player in the company since he joined two decades ago as one of the 29 members of Alibaba Partnerships, a select group of executives with a powerful effect on the company's strategic direction. One of the largest online marketplaces in the world, Taobao, has a system infrastructure that was greatly influenced by him.
Hence, he will proceed to oversee IoT activities at Damo as well as T-Head, Alibaba's in-house chip development unit that has risen in relevance as China deals with growing U.S. tech penalties.
On the other hand, in addition to leading the cloud division, the CEO will also be in charge of DingTalk, Alibaba's corporate communication app, which collaborates closely with the cloud division.
Notably, Tencent, Alibaba Cloud's arch-rival domestically, competes against it due to its dominance in the gaming industry. Additionally, it faces competition from Huawei, and Tianyi, the state telecom behemoth China Telecom's cloud subsidiary, both of which are gaining an advantage in the support of public and government infrastructure.