Alibaba to cease data center operations in India and Australia

“Some of their customers in India are Paytm (their largest customer) Oppo, Vivo, DLF, and Reliance Entertainment. However, the presence of hyperscalers impacted their growth plans,” Ranjan said.

In April, Alibaba Cloud reduced the price of some its public cloud products deployed in non-Mainland China regions by up to 59%.

Analysts saw this as a strategy to undercut competition from larger hyperscalers in markets, such as South Korea, Indonesia, Hong Kong, Singapore, Malaysia, Philippines, Thailand, Japan, the US, Germany, the UK, and the UAE.

Azure, AWS set to gain

The migration to a different cloud provider will result in additional investment for enterprises moving out of Alibaba Cloud, according to Charlie Dai, Forrester’s principal analyst.

Despite this, customers are likely to move to other cloud providers as they may not be comfortable shifting data outside their country, analysts said.

“Mostly Azure and AWS are expected to gain the customers moving out of Alibaba Cloud. If it’s IaaS, AWS will benefit as it has a strong 60% market share in India IaaS space,” Ranjan said.