Tencent Holdings giving Alibaba a tough time after signing deal with IBM

The rivalry between Alibaba and Tencent Holdings has been a bitter one over the recent years. Both of these companies tends to do better than the another and are always trying to get the competitive edge over each other through one way or another. Recently, CNBC reported that Alibaba’s arch rival Tencent Holdings have signed a deal of cloud software with International Business Machines (IBM). A few days ago, Tencent Holdings officially announced that it will be collaborating with International Business Machines on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

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Tencent Holdings is best known for its WeChat messaging app available on all the mobile phone platforms as well as online games. But it is believed that the company wants to enter into a new market of business software whose cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries. CNBC says “Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.”

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Alibaba which is also working on its cloud unit gradually has generated around $38 million in revenue in the time span of only three months. Tencent recently said that “it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal. For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.”

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Hence in a nutshell, both of these company will keep on innovating and bringing development within their businesses in the near future to post better results.

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