Following Alibaba’s announcement that it will list on the New York Stock Exchange, global eBusiness professionals are paying closer attention to the Chinese Internet giant, wondering what impact it will have on their business. For those who need to get up to speed on the company, here is a preview of Forrester’s upcoming report on Alibaba, which summarizes its development history, revenue streams, business expansion, and the impact it will have on digital services business value chain:
Alibaba draws its revenue streams from the ecosystem around its eCommerce platform. According to Alibaba Group’s F-1 filling, the main businesses for the Alibaba Group include B2B (168.com and alibaba.com), C2C (Taobao.com), B2C (Tmall.com, Juhuasuan.com and AliExpress.com), and digital services. Alibaba's revised filing from August 2014 indicates that it handled more than RMB 1.8 trillion (about $296 billion) of transactions for 279 million active users across its three Chinese online marketplaces in 2013. Over the past 15 years, Alibaba has built an ecosystem of buyers, sellers, third-party service providers, and strategic alliance partners around its platform. By leveraging buyer and seller data from this ecosystem, Alibaba has created a data analytics product that gives a complete view of a customer at any phase of their purchase journey, resulting in a very successful marketing and commerce business that generates significant revenues.
At the Cisco Live Event 2014 in San Francisco last week, we heard about plenty of updates, extensions, and new acquisitions to expand the business. The major technologies highlighted were InterCloud, Application Centric Infrastructure (ACI), and the Internet of Everything (IoE). Among these new offerings, I reveal that Cisco’s extended big data and analytics capabilities excited me the most. Why? Because its data virtualization techniques can help customers easily analyze large volumes of virtual data, no matter where it physically resides; enhanced video analytics technology could improve the customer experience when checking out in retail stores or waiting for a train; while IoE analytics and digital intelligence increase customer engagement.
Data virtualization supports big data analytics. End user organizations realize the importance of quickly and carefully making decisions; to do this, they plan to centralize data from different branch offices or departments. Consolidating data that resides in multiple systems and in global locations — or that is locked away in spreadsheets — is expensive. For example, telecom operators in China have hundreds of millions subscribers and need to consolidate and analyze this customer data — but it resides in 31 provincial companies. Data consolidation will be a huge and expensive project, but data virtualization technology can help solve this problem. Customers could consider adding Cisco to their data virtualization vendor shortlist, especially given Cisco’s acquisition of Composite Software last July.