The linkup between Alibaba and Sinopec will help the oil company to use information technology more appropriately in its sector.
Alibaba Group Holding is the Chinese e-commerce giant that has taken over the world with its unique platform. The company offers a business platform to its people specifically small and medium businesses (SMBs). The company’s online marketplaces surely stunned the likes of Amazon and EBay, when it started to gather pace and became people’s first choice for online shopping. Apart from this, it also provides cloud-computing services and big data analysis. Recently, it has tied up with Asia’s largest oil refiners, Sinopec.
Alibaba Group Holding Ltd. joined hands with oil refiners in order to provide services in big data analysis and cloud computing. The companies are quite content with the deal and seek to strengthen their bond to work together for better results. Sinopec, or more commonly known as China Petroleum & Chemical Corporation, said in its official microblog that the partnership between both parties did not mean any equity cooperation involved in the later stages. The linkup was done only for technical services. However, the official blog post did not disclose any news about the money involved in this deal.
“Cooperation between Alibaba Group, a poster child for private enterprise in China, and one of the country’s biggest state-owned companies’ dovetails with government policy”, reports Channel News Asia. It is believed that the pressure is building up against companies, such as Sinopec and other giants, in the same industry by provoking them to use information technology better in the fields. Moreover, the government is determined to ‘forge’ cloud-computing agreements with many government or state run companies.
The Director of Alibaba’s cloud-computing business ‘Aliyun’, Allen Zhang, said in a statement, “By helping Sinopec with digitization and big data technologies, we hope we can play a part to help bring about greener solutions and new business opportunities.”
The oil-refining giant is also looking forward to this linkup, as the company believes that information technology can transform the industry and raise its standards to higher levels. It said that the linkup between Alibaba’s cloud-computing business sector and the oil company would assist it to upgrade the traditional petrochemical services of the company in the near future.
Aliyun is currently focused to build well-organized cloud-based business systems within the oil company, which will perform big data analytics to cover up for the ‘entire’ petrochemical production chain.
Moreover, both parties are looking for opportunities to expand their linkup and further work in sectors like Internet of Things (IoT), online payments, finance, vehicle networking, e-commerce, and online to offline commerce.