SET-listed IT retail chain Com7 is diversifying its business by adding cloud solutions for enterprises through a partnership with Alibaba Cloud, the cloud computing service arm of Chinese e-commerce giant Alibaba Group.
Com7 also decided to enter the healthcare business in April as its board resolved to form a joint venture with Royal Bangkok Healthcare Co, a subsidiary of Bangkok Dusit Medical Services Plc, to pursue a drug store enterprise.
Com7 has a 40% stake in the joint venture, which has registered capital of 200 million baht.
Referring to its latest foray into the cloud business, Com7 chief executive Sura Kanitthaweekul said the firm has been appointed as an official distributor of Alibaba Cloud to expand into the growing market in Thailand.
Com7 is handling the marketing and distribution of Alibaba Cloud products across all industries.
According to Mr Sura, the partnership with Alibaba Cloud will offer support to all Thai businesses, ranging from startups to government agencies.
The strategy is to penetrate the business-to-business market, he said.
Digital transformation trends are growing at an accelerated speed, especially with the pandemic driving organisations to adjust their work patterns by using technology to increase management efficiency, reduce costs and facilitate business, said Mr Sura.
He said Com7 plans to deploy Alibaba Cloud solutions for its operations as the company has started to pursue digital transformation.
The growth of digital consumer trends, such as smartphones and smart devices, is another factor supporting the cloud services business to grow, said Mr Sura.
"Com7 is confident the cooperation with Alibaba Cloud can lead to new opportunities together in the future," he said.
According to research firm Gartner, cloud spending in Thailand is expected to reach 26 billion baht in 2022, up 18.8% year-on-year.
At the global level, cloud spending is forecast to reach US$397 billion in 2022, a surge of 16.4% from 2021.
"Based on Com7's strength in consumer and enterprise industry, we are confident Alibaba Cloud's strong basic capability and vertical experiences in areas such as e-commerce, fintech, digital marketing and entertainment can bring success to local customers," said Selina Yuan, vice-president of Alibaba Group.