What’s Next for Cloud Computing? Insights from Alibaba Cloud’s New President

Future of Cloud Computing

Q: You’ve noticed the focus of cloud‑computing competition shifting – many still talk about price. What’s really changing?

Answer: Price is a basic competition factor, but the core value ultimately wins. Value must be shown on both the technology side and the application side. Cloud started as infrastructure, but Alibaba has always aimed to build a data‑processing platform, not just a generic cloud.

After an early period of pure infrastructure, we realized that in China success also requires solid underlying infrastructure.

Initially we tried to build data processing on open‑source systems, but soon realized we needed to develop our own. Alibaba created a unique data‑processing system (now called MaxCompute, formerly ODPS), which is rare both domestically and internationally.

We then had to perfect the IaaS layer. The lower‑level competition is about infrastructure maturity, stability, and price, while the upper‑level competition focuses on AI and related services.

Q: You mentioned data processing – why didn’t open‑source work?

Answer: Open‑source projects have never faced data volumes like ours. Hadoop and Spark made a huge leap over traditional databases, but their scale is still far behind Alibaba’s. Their stability also didn’t meet our requirements. We built a 5K‑node cluster, breaking the 5,000‑machine limit, enabling massive scale processing.

Cost is another factor: when data volume is small, cost isn’t a concern; at massive scale, we must keep cost growth far below revenue growth, even though our business expands over 50% annually.

We now run large‑scale mixed workloads (online + offline) on the same cluster, freeing resources for peak events like Double 11 and then shifting those resources to data analysis afterward – something open‑source can’t achieve.

Q: Hybrid cloud is a hot topic abroad. How do you see its impact on cloud computing?

Answer: Hybrid cloud will remain important. Many customers – governments, banks – need strict control and isolation. Public‑cloud isolation is improving with hardware solutions, but hybrid‑cloud demand also stems from strategic considerations, so it will stay widespread for a long time.

Q: You said cloud will become “backend‑only” and risk being forgotten like power plants. Thoughts?

Answer: Being “forgotten but indispensable” is desirable, like air. Cloud should be a platform, not a consumer‑facing software. It provides infrastructure, data, and AI capabilities that power countless downstream services.

Our advantage lies in large‑scale system building, technical innovation, and deep industry scenarios. However, many industries still need specialized partners for implementation, consulting, and training.

Q: Do you see a scale target for Alibaba Cloud?

Answer: A platform with 10,000 employees is already huge. If staff size grows linearly with business, it may indicate we’re doing too many things outside our core strengths.

Q: How will AI and open‑source affect cloud’s future?

Answer: Open‑source will standardize cloud components (containers, etc.), making development more consistent and lowering barriers. Large companies using open‑source will drive stability and broader adoption.

Future of Alibaba Cloud

Q: What have you done in the first four months?

Answer: We discussed high‑growth strategies, non‑linear staff growth, the future commercial model of cloud, core capabilities, and what we should not do. We aligned on organization adjustments, KPI implementation, and tooling to ensure process consistency.

Q: Some say Alibaba Cloud’s shortcoming is its B2B service capability. Your view?

Answer: Alibaba is fundamentally a technology company, but its commercial success sometimes masks that. We need to strengthen B2B service ability through ecosystem partners and improve productization, documentation, and developer experience.

Q: How do you define the CTO’s primary responsibilities?

Answer: 1) Forecast future technology directions; 2) Integrate internal resources; 3) Shape engineering culture; 4) Ensure timely technical support for business systems.

Q: What advice would you give CEOs/CIOs of traditional enterprises?

Answer: Focus on business, avoid technology bottlenecks, and anticipate systemic risks from emerging tech (5G, IoT, autonomous driving). Understand how new technologies affect your industry and plan accordingly.

Q: What cloud‑related issues are often overlooked by enterprises?

Answer: Operations and maintenance become critical after migration; many Chinese firms lack a paid‑ops mindset. Security is actually easier in the cloud because patches and vulnerabilities are handled centrally.

Q: How will large enterprises’ IT teams change after moving to the cloud?

Answer: Third‑party providers will handle many operational tasks, reducing the need for traditional roles like DBA. The focus shifts to leveraging cloud services and integrating specialized partners.

Q: Will large IT teams continue to develop in‑house solutions?

Answer: Likely less. Specialization and division of labor are essential for efficiency; companies should concentrate on core advantages and let the cloud handle the rest.