Alibaba Group Holding Ltd.’s cloud division will increase prices by as much as 50 percent for several of its cybersecurity products, a move that signals confidence in its technology and could bolster the unit’s profitability ahead of a potential IPO.
The price adjustments, effective July 15, 2026, will affect Alibaba Cloud’s Distributed Denial-of-Service (DDoS) protection services, a critical offering for businesses looking to defend against traffic-based attacks. “These adjustments reflect the increasing value and sophistication of our security services,” an Alibaba Cloud spokesperson said in the announcement.
For customers in mainland China, the monthly price for DDoS High Defense will jump 50 percent from RMB100 to RMB150 per Mbps. For users outside mainland China, prices for all related DDoS high-defense products will be raised by 25 percent to 50 percent. The company will also increase the monthly cost for its DDoS Native Protection 2.0 feature from RMB82 to RMB98.5 per Mbps, though it will cut the daily elastic price for the same service in half.
The move positions Alibaba Cloud’s pricing more aggressively against competitors like Tencent Cloud and Huawei Cloud, suggesting it believes its product performance and market leadership can sustain higher rates. The price hikes are likely to flow directly to the cloud division’s bottom line, improving margins for a business segment that has faced intense domestic competition. This could be viewed positively by investors as Alibaba (BABA) continues to weigh a separate listing for its high-growth cloud intelligence unit, which currently trades at a significant discount to peers like Amazon Web Services.
This article is for informational purposes only and does not constitute investment advice.
