Alibaba Shares Rise as Cloud Unit Increases Cybersecurity Prices
Shares of Alibaba Group climbed on Wednesday after its cloud division announced pricing adjustments for cybersecurity services. The move strengthens expectations that the company will further monetize rising demand driven by artificial intelligence.
Alibaba’s Hong Kong-listed stock gained 3.6%, reaching HK$129 as of 06:13 GMT.
Alibaba Cloud Announces DDoS Protection Price Changes
According to local media reports, Alibaba Cloud will implement new pricing for several distributed denial-of-service (DDoS) protection services starting July 15.
The monthly cost for its DDoS Native Protection 2.0 service will increase from 82 yuan to 98.5 yuan per Mbps. At the same time, daily pricing will be reduced from 12 yuan to 6 yuan, offering more flexible short-term options.
Higher Costs for Mainland and Global Services
For DDoS High Defense services within mainland China, monthly pricing will rise from 100 yuan to 150 yuan per Mbps. Daily rates will also increase, moving from 6 yuan to 8 yuan.
Outside mainland China, Alibaba Cloud is expected to apply broader price increases, ranging between 25% and 50%, depending on the product and region.
AI Demand Drives Cloud and Cybersecurity Growth
These pricing changes highlight the growing demand for cybersecurity solutions and cloud infrastructure. As businesses expand their use of artificial intelligence, the need for robust data protection and network security continues to rise.
Cloud Providers Capitalize on AI Boom
The announcement comes as major global cloud providers look to offset rising infrastructure costs while benefiting from the rapid increase in AI-related workloads. Companies across industries are investing heavily in cloud services to support data-intensive applications, creating new revenue opportunities for providers like Alibaba.
