Canalys: Chinese cloud infrastructure spending reaches almost $3B a quarter




 

Canalys released its latest cloud infrastructure spending numbers for China today, and it's all trending upward. For starters, the market reached $2.9 billion for the quarter, an increase of 60.8%. China now accounts for 10.4% of worldwide cloud spending, meaning it's second only to the U.S. in overall spending.

That is pretty amazing, given that China was late in coming to the cloud, but also not surprising given the sheer size of the overall potential market. Once it got going, it was bound to gain momentum simply because of that size. Still, it is surprising that it is three times the size in terms of market share of the next closest country, according to Canalys.

Most of the business is going to Chinese cloud companies. Alibaba, which, like Amazon, has a retail arm and a cloud arm, leads the way by far, with 45% of the market share (worth $1.3 billion). Tencent is second, with 18.6%, followed by AWS with 8.6% and Baidu with 8.2%. AWS was the only non-Chinese company to register any market share.

Wong Yih Khai, senior analyst at Canalys, says the market demand for cloud infrastructure services in China continues to grow at a rapid pace led by demand for artificial intelligence services.

"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," he said in a statement.

Interestingly enough, the market share breaks down somewhat like worldwide market share, where Amazon leads with around 34%, with Microsoft in second with around 15% and Google in third with around 8%.


COMMENTS

More Related News

China Points to Shrimp as Virus Carrier After Salmon Debacle
China Points to Shrimp as Virus Carrier After Salmon Debacle

(Bloomberg) -- China said samples of imported shrimp tested positive for the coronavirus, raising questions again over whether the pathogen can spread through food or frozen products.The virus tested positive on both the inside and outside of the shrimp packaging, said China's General Administration

US sanctions Chinese officials over Xinjiang
US sanctions Chinese officials over Xinjiang 'violations'

China is accused of mass detentions and religious persecution of the Uighur Muslims.

Senior China diplomat urges "positive energy" in ties with United States
Senior China diplomat urges "positive energy" in ties with United States

Senior Chinese diplomat Wang Yi said on Thursday that China and U.S. relations face the most serious challenges since diplomatic ties were established in 1979 but the two countries can return to the right track. China and the United States should jointly explore ways for peaceful coexistence and release more "positive energy," State Councilor Wang, who is also foreign minister, said in a speech posted on his ministry's website. Washington and Beijing have been at loggerheads over the handling of the coronavirus outbreak, China's actions in the former British colony of Hong Kong, a long-running trade dispute, and frictions over Taiwan and the South China Sea.

Coronavirus: What are President Trump
Coronavirus: What are President Trump's charges against the WHO?

The World Health Organization rejects US criticism it mishandled the early days of the coronavirus outbreak.

FBI director: China is
FBI director: China is 'greatest threat' to US

China is working to be the world's superpower "by any means necessary," Christopher Wray said.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy