Lingyang has confirmed that it will not renew its lease in the separate office area of Gaoqiao Cloud Port, and the team is likely to move back to Alibaba Cloud Valley by the end of this year. The topic of office relocation has been discussed within the team.
Four years ago, Lingyang announced its separation from Alibaba Group and became a subsidiary focused on enterprise data intelligence services. Since then, it has been operating independently and moved to Gaoqiao Cloud Port, located 5 kilometers away from Alibaba’s headquarters in Xixi Park, in May 2023. In terms of business operations, Lingyang has also conducted independent accounting in the past few years. According to insiders, Lingyang basically achieved a break even point until last year.
Some insiders believe that the relocation of Lingyang’s office may also be related to changes in Alibaba Group’s management philosophy. In the past few years, due to reflection on the complexity of business, Alibaba has always advocated simplifying management levels and increasing the independence of each business through spin offs, including the “business responsibility system” proposed in 2020 and the “1+6+N” proposed in 2023, which are the best examples of this idea. And Lingyang is also independent in this context.
But after experiencing the exploration of splitting, Alibaba has once again returned to a centralized management model, and the original “1+6+N” architecture has officially exited the historical stage. The relocation of the Lingyang team office is not surprising.
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