Alibaba’s Daniel Zhang Steps Down from Cloud Business

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Daniel Zhang, the former chief executive officer (CEO) and chairman of Alibaba Group, has stepped down from the company’s cloud business. The move comes as a surprise, as Zhang had only recently announced that he would be leaving his roles as group CEO and chairman to focus on the cloud unit.

Zhang had been serving in three roles at Alibaba, heading the group as well as the cloud intelligence unit. The unit is China’s largest cloud provider and is set to be spun off from Alibaba as part of the group’s restructuring.

In an internal letter to staff, Alibaba said that Zhang had expressed his wish to transition away from his role as chairman and CEO of the cloud unit. The company said it respected and accepted his decision, and appointed Eddie Wu as acting chairman and CEO of the unit.

Zhang will continue to contribute to Alibaba by “channeling his expertise differently,” the letter said. Alibaba will invest $1 billion in a technology fund that Zhang will establish. The company has also given Zhang an “emeritus” title, a first in its history.

Zhang’s departure from the cloud business is a significant change for Alibaba. He had been a key figure in the development of the unit, and his leadership was seen as crucial to its success. It is not clear why Zhang has decided to step down, but it is possible that he is looking to focus on other areas of the business or to pursue other interests.

The cloud business is a major part of Alibaba’s future, and its success will be critical to the company’s overall growth. Wu will need to quickly establish himself as a leader in the cloud industry and to ensure that the unit continues to grow and innovate.

Zhang’s departure is a reminder of the challenges that Alibaba faces as it navigates a changing regulatory landscape in China. The company has been heavily targeted by regulators in recent years, and its cloud business is likely to be closely scrutinized. Wu will need to tread carefully as he takes over the unit.

Overall, Zhang’s departure from the cloud business is a significant change for Alibaba. It remains to be seen how the unit will fare under Wu’s leadership, but the company’s future success will depend on its ability to continue to grow and innovate in the cloud industry.

The following are some of the changes that Alibaba is making to its cloud business:

  • The unit is being spun off from Alibaba as part of the company’s restructuring.
  • Eddie Wu has been appointed as acting chairman and CEO of the unit.
  • Alibaba is investing $1 billion in a technology fund that Zhang will establish.
  • Zhang has been given an “emeritus” title, a first in Alibaba’s history.

These changes are a sign of Alibaba’s commitment to the cloud business. The company is confident that the unit has the potential to be a major driver of its future growth. However, the cloud business is also facing challenges, such as the changing regulatory landscape in China. Wu will need to address these challenges in order to ensure the unit’s success.


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