Cloud infrastructure services spend in China hits US$2.9 billion in Q3 2019


By MYBRANDBOOK


MYBRAND BOOK

The latest research from Canalys’ Cloud Channel Analysis service highlights the continuing boom in spending on cloud infrastructure services in China. Total spending increased 60.8% to reach US$2.9 billion in Q3 2019. China now accounts for 10.4% of the worldwide total, up from just over 9% in Q1. This makes it the second largest market behind the US, and nearly three times the size of the next biggest countries. China-based cloud service providers continued to dominate the domestic market, taking five of the top six positions. In dollar terms, market leader Alibaba Cloud achieved the biggest gain, with sales up US$472 million on Q3 2018. Overall, it grew 57.9% to US$1.3 billion and accounted for 45.0% market share. Tencent Cloud and Baidu Cloud were the fastest growing of the top five cloud service providers, exceeding the market average. Tencent Cloud was up 91.6% on annual basis to account for 18.6%. Amazon Web Service (AWS) remained in third position with 8.6% market share, closely followed by Baidu Cloud, which grew 70.3%, and rounded off the top four with 8.2%.

 

“The demand for on-demand cloud infrastructure services in China continues to grow, as more private and public organizations embark on digital transformation projects and start building platforms and applications to develop new services,” said Wong Yih Khai, Senior Analyst at Canalys. “With this growing demand, cloud service providers are having to differentiate themselves in a highly competitive environment. One of the key emerging differentiators, especially among local cloud service providers, is the development of artificial intelligence (AI) capabilities, either as a service or embedded in their own offerings. AI for facial recognition is already widely used across the country in many smart city deployments and will be a key part of healthcare, retail, finance, transport and industry cloud solutions.”

 

Alibaba Cloud, Tencent Cloud and Baidu Cloud are all banking on their AI capabilities to maintain growth in the cloud infrastructure services market in China and increase their market share. Alibaba Cloud introduced its first AI processor designed to accelerate machine learning tasks, which is already being used internally to power certain features of its ecommerce platform.


Tencent Cloud has made a series of investments in startups around the world focused on AI development through its AI Accelerator initiative. Baidu Cloud is also investing in its AI business, including increasing its developer base to 1.5 million, which aims to drive more AI-based applications and workloads onto its platform.

 

For more information, please contact:

Canalys China
Nicole Peng: nicole_peng@canalys.com +86 150 2186 8330

 

Canalys India
Rushabh Doshi: rushabh_doshi@canalys.com +65 9820 0071

 

Canalys Singapore
Sharon Hiu: sharon_hiu@canalys.com +65 9777 9015
Yih Khai Wong: yih_khai_wong@canalys.com +65 9712 7835

 

Canalys UK
Matthew Ball: matthew_ball@canalys.com +44 7887 950 505
Alastair Edwards: alastair_edwards@canalys.com +44 7901 915 991

 

Canalys USA
Marcy Ryan: marcy_ryan@canalys.com +1 650 862 4299
Alex Smith: alex_smith@canalys.com +1 650 799 4483

 

About Canalys
Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

 

Receiving updates
To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please contact us. Alternatively, you can email press@canalys.com.

 



 TOP 25 ICT BRANDS 2019 

 TOP 25 BRANDS  Placeholder image

 WOMEN LEADERSHIP  Placeholder image

 IMAGE GALLERY  Placeholder image
IT FORUM 2019

 EMINENT CIOs OF INDIA  Placeholder image

 MOST ADMIRED BRANDS  Placeholder image

 TRENDS IN TECHNOLOGY  Placeholder image

MORE VIDEOS  Placeholder image




 ADVERTISEMENTS  Placeholder image

Copyright www.mybrandbook.co.in @1999-2019 - All rights reserved.
Reproduction in whole or in part in any form or medium without express written permission of Kalinga Digital Media Pvt. Ltd. is prohibited.
Other Initiatives : www.varindia.com | www.spoindia.org