The cloud infrastructure services spending in China grew 58 percent to $2.3 billion in Q2 2019, according to the latest Canalys research.
Daniel Liu, Canalys Research Analyst, said: “Competition in China has intensified, mainly due to local cloud service providers, including Alibaba Cloud, Tencent Cloud and Baidu Cloud. Boosting revenue from cloud services is a top strategic priority for these companies amid growing domestic demands.”
Alibaba Cloud is the clear leader in China, though the other local cloud service providers are gaining share. Alibaba Cloud has 43 percent of the cloud service provider market, more than the next four combined.
Tencent Cloud was the second largest cloud service provider. Tencent Cloud’s digital payments, egovernment and advertising initiatives have helped it diversify from its long-standing specialization in the gaming and video-streaming verticals.
Amazon Web Services (AWS) was third. AWS has increased its focus on China, appointing a new leader for its Chinese operations, with the aim of strengthening sales and marketing, as well as relationships with channel partners and government departments.
Baidu Cloud retained its fourth-place position. Baidu Cloud has invested in its cloud business, including it in the company’s focus on developing artificial intelligence platforms, where it has found opportunities in the local telecommunications, manufacturing and autonomous vehicle sectors.