- Alibaba Group Holding Limited (NYSE:BABA) created a new subsidiary, Lingyang Intelligent Service Co, to help companies in their digital transformation, the SCMP reports.
- It reflects Alibaba's effort to engage new market segments and industries as domestic online retail competition amplified amid weak consumer spending and economic slowdown.
- The move shortly follows Chair and CEO Daniel Zhang Yong's article stressing the importance of technology to Chinese society.
- Also Read: Alibaba Goes Amazon Way To Develop In-House Silicon
- Lingyang will offer "data-intelligence-as-a-service" to enterprises by leveraging the expertise of Alibaba.
- Alibaba coined the term to distinguish Lingyang's offering from software-as-a-service, a long-standing enterprise delivery model in which software is accessed online via subscription.
- The core team of Lingyang's involvement in significant events like the annual Singles' Day shopping festival has made them conversant about data.
- Alibaba VP Peng Xinyu, an expert in corporate data management, serves as CEO at Lingyang.
- Lingyang's 11 core products include Dataphin, Bizphin, Quick Audience, Quick BI (for business intelligence0, Business Adviser and Operation Adviser.
- Alibaba has already expanded its reach into the enterprise services market via Alibaba Cloud.
- Alibaba Cloud recently reported that it turned in a full-year profit for the first time in 13 years, posting a 1.1 billion yuan ($164 million) profit for the 12 months to March 31.
- Alibaba emphasized focusing overseas to beat the overhang from the uncertain domestic regulatory environment.
- Price Action: BABA shares traded lower by 2.56% at $113.03 on the last check Tuesday.
- Photo by Fooksou Lamimo via Wikimedia
