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Alibaba Cloud Remains No. 1 in China's Cloud Service Market, Followed by Huawei

September 11, 2020 4:52 am

Beijing (PingWest)—The opportunities and demands resulting from the fallout of the COVID-19 pandemic have fueled the cloud computing business in China.

According to a recent research report by Canalys, during the period between April and June, Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu AI Cloud collectively controlled 78.7% of China’s cloud infrastructure services market. 

Alibaba Cloud stood in the first position, accounting for 40.1% of the market share, a decrease of 4.4 percentage points from the previous quarter.

Huawei Cloud ranked second with a market share of 15.5%, up from 14.1% in the first quarter, closely followed by Tencent Cloud, which grew its market share to 15.1% from 13.9% in the previous quarter, the report showed.

Baidu AI Cloud was the fourth-largest cloud services seller during the period, maintaining its market share basically unchanged at 8%.

Overall, China’s $4.3 billion spend on cloud services, which represents a year-on-year increase of 70%, enabled the country to maintain its position as the world’s second-largest cloud services market in the second quarter after the U.S., home to industry leaders Google Cloud, Amazon Web Services and Microsoft Azure.

As the epidemic has dealt a blow to the Chinese economy, the Chinese government proposed to accelerate the digital transformation, that is, to build new infrastructure related to 5g, big data, and cloud computing to stimulate economic development.

Meanwhile, business operations are increasingly going digital, while remote work is continuing, and students are relying more on the support of collaboration platforms.“These trends will further the use of cloud-native applications, drive workload migration, and service opportunities as well as data center capacity build-out,” said Matthew Ball, Canalys Chief Analyst. 

“Momentum in China’s cloud infrastructure services is set to accelerate,” said Canalys analyst Blake Murray in a statement. “An already growing market is being propelled by government initiatives, commitment by cloud service providers to invest, as well as increasing demand for digital transformation and online services in the post-COVID-19 economy,” Murray added.