Tencent Cloud, the cloud computing business of internet giant Tencent, aims to increase its overseas revenue 4-fold this year.
The cloud computing service provider is now operating in 53 available zones in 25 countries and regions across the world, including the US, Germany, South Korea, India, Thailand, Russia and Japan, China Daily reported.
Tencent Cloud has accumulated a lot of experience and developed sophisticated solutions for customers in four sectors – games, education, short videos and e-commerce, said Da Zhiqian, vice president of Tencent Cloud.
Synergy Research Group said that spend on cloud infrastructure services surged 42 percent in Q1 2019. Amazon grew faster than the overall Cloud market. Microsoft, Google Cloud, Alibaba and Tencent, which are behind AWS, achieved more than 70 percent growth in their revenues. IBM, Salesforce, Oracle and Rackspace have lower growth rates.
A Gartner report indicates that China-based Alibaba Cloud is the market leader in the Asia Pacific region, well ahead of Amazon Web Services, Microsoft, Google Cloud, among others.
Globally, CIOs expect their IT budgets to grow by 2.9 percent in 2019 against 3 percent in 2018, according to a Gartner survey.
“CIOs should use their financial resources to make 2019 a transformative year for their businesses. Stay active in the transformation discussions and invest time, money and human resources to remove any barriers to change,” said Andy Rowsell-Jones, vice president and distinguished analyst at Gartner.
Tencent Cloud is providing support for the online education platform VIPKID so millions of teachers and students on the platform can have a pleasant experience via quick and smooth internet.
“We will expand our presence in markets where there are a large number of potential users, because that indicates big business opportunities for us. And for those where business is not that strong at the present time, we may adopt the strategy of working with other partners,” Da Zhiqian said.
The public cloud market is expected to reach $214.3 billion in 2019 from $182.4 billion in 2018, growing 17.5 percent, according to market research firm Gartner.
Over one-third of enterprises and organizations have cloud investment among their top three priorities for investment, a recent survey by Gartner showed.
Research firm Canalys said AWS, Microsoft and Google are the top three players in the global cloud market last year, with a combined market share amounting to 57 percent.
The battle for enterprise customers will intensify between the cloud service providers as they seek to maintain high growth rates.
“The cloud infrastructure market is moving into a new phase of hybrid IT adoption, with businesses demanding cloud services that can be more easily integrated with their on-premises environments,” said Canalys Chief Analyst Alastair Edwards.