China’s Central Government Procurement Center Moved Its Official Site To Alibaba Holding Ltd (BABA)’s AliCloud

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Alibaba Holding Ltd (NYSE:BABA)’s subsidiary, Alibaba Cloud Computing, disclosed publicly that the Central Government Procurement Center of the Chinese establishment has shifted its official website to AliCloud more than a year ago. The website, zycg.gov.cn, has been operated without any incident to worry about so far.

Cloud computing has been the order of the modern day technology with many of the smaller and mid-size companies moving towards the cloud computing environment. Therefore, there were tremendous opportunities for Alibaba Holding Ltd (NYSE:BABA)’s subsidiary, Alibaba Cloud Computing. However, most of the government companies are yet to decide to shift to the cloud computing module.

Digitalized Services

According to the company, the Central Government Procurement Center’s web portal offered a broad range of digitalized procurement services. This included supply agreements, digital reverse auctions, announcements, calls for bids, and an online marketplace. In the last year, CGPC transacted 400,000 procurements through online for a gross merchandise volume of 20.6 billion RMB.

As a result of acquiring the cloud service, the CGPC could conserve costs on maintenance and improve stability, CGPC’s information services Director, He Bing, said. The cloud process also helps the government to focus on maximizing its procurement work. This can be done through the outsourcing of the tough system management details while employees to focus on maximizing the government’s procurement work.

Potential

According to He Baohong, China Academy of Telecommunication Research’s Internet Center Director, the potential of cloud service from the government is a big one. He said that China’s procurement for government information technology surpassed RMB 50 billion in a year. It was also pointed out that a big part of the IT procurement was only hardware and that a small proportion of the amount was spent on IT services purely for maintenance purposes.

Currently, China has 12 provinces besides provincial level municipalities. Alibaba Holding Ltd (NYSE:BABA)’s AliCloud services are used in these government establishments. Aside from this, there could be department-wise requirement, which could be tapped during the latter period.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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