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China cloud market records 67% jump in Q1 spending

Written by Mon 22 Jun 2020

China’s cloud market records seismic growth despite Covid-19 friction

New figures show spending on cloud infrastructure in China grew by 67 percent in Q1.

IT analyst firm Canalys totted up and posted the country’s latest cloud sums last week, after a quarter that has seen demand for cloud services soar around the world.

While Covid-19 has caused some large cloud projects to be put on hold, business demand for remote working and collaboration platforms have driven a record quarter for global cloud markets.

In response, public cloud providers have accelerated or drafted new infrastructure investment to ensure they have enough capacity to meet demand.

China’s cloud leader, Alibaba Cloud, for instance recently announced plans to invest $28 billion in cloud infrastructure over the next three years. Meanwhile, rival Tencent announced a five-year $70bn investment plan.

China is the world’s second-largest cloud infrastructure market but due to the $3.9 billion spent last quarter, the country marginally grew its global market share by 2.5 percent to 12.5 percent, Canalys said.

Unlike its international counterparts, the Chinese government’s Covid-19 economic program focuses heavily on “new-infrastructure”, such as connectivity, healthcare, education, transport — investment which Canalys said will drive even more cloud growth over the next 12 months.

The stimulus package will further intensify competition between the country’s leading cloud providers, the firm added.

Alibaba Cloud currently commands 44.5 percent of the market, with Huawei Cloud, Tencent Cloud and Baidu AI Cloud holding 14.1 percent. 13.9 percent and 8.6 percent respectively.

“New cloud migration and cloud-native opportunities are emerging as organizations assess their response to the crisis, optimize future emergency continuity plans and develop new processes and services,” commented Matthew Ball, Canalys Chief Analyst.

 

 

 

 

Written by Mon 22 Jun 2020

Tags:

Alibaba Baidu Cloud Coronavirus Huawei tencent
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