On February 11th, 2020, IDC released the report Tracking of the Public Cloud Service Market in China (Q3 of 2019).
The report shows that in Q3 of 2019 the market size of IaaS of public cloud in China reached RMB 14.46 billion, up by 62.2% on year-on-year basis. As the top three Internet cloud service providers, Alibaba Cloud, Tencent Cloud and Kingsoft Cloud lead the rapid development of China's cloud computing market together with China Telecom, Huawei Cloud and AWS. According to the forecast of semi-annual report issued by IDC last time, from 2019 to 2023 the compound annual growth rate of IaaS of public cloud in China will reach 46%, and the market size of IaaS in China is expected to reach RMB 208.7 billion by 2023.
Source: IDC China, Q3 of 2019
Since China announced to vigorously promote cloud computing, the demand for digital cloud access for enterprises of government affairs, finance, healthcare, manufacturing, education and other industries grew rapidly, which also gave power to the prosperity of cloud computing. From the perspective of IaaS market, Alibaba Cloud, Tencent Cloud and Kingsoft Cloud have maintained a stable pattern of three Internet cloud computing giants for many years. In the era of coexistence of consumer Internet and industrial Internet, it also indirectly shows that cloud manufacturers with both Internet-level and enterprise-level business capabilities have outstanding advantages in the development of the industry. Alibaba Cloud continues to maintain its market leading position by its revenue advantages in new retail, cloud video, cloud games and other fields, but the further expansion of the enterprise-level market dominated by government affairs, finance and manufacturing industries is providing it with new growth power. Tencent Cloud benefits from high penetration rate in the game and video industries, increase of the use of existing customers and the expansion of customer base from education, finance and retail industries. Its comprehensive operating revenue has been further increased. While the Internet business grew continuously and steadily, Kingsoft Cloud entered the enterprise-level market by exploring customer demands and releasing technology and service advantages. It has made breakthroughs in finance, government and enterprise, healthcare, AIoT, education, manufacturing and other industries; and launched four kinds and 32 types of financial solutions, and several enterprise specific total-station solutions such as intelligent dwelling, which had become the driving force for the continuous increase of business volume. Of course, in order to cover the shortage of built-in advantages compared with competitors, some enterprises that grew up later in the field of cloud computing are also constantly innovating product forms and business models by various means. For example, Huawei proposed to be black land of enterprises. With the arrival of 5G era, the application scenarios such as AR/VR/cloud games will be realized faster and promote the development of relevant cloud services. The integration ability of cloud computing, artificial intelligence and 5G technology has become another major competition direction for public cloud service providers. In this context, industry customers will have more and more demands for professional cloud services, and rely more on the professional delivery and advanced industry experience provided by cloud computing enterprises. As an important partner in the digital transformation of enterprises, cloud computing enterprises with Internet advantage business and the deep exploration experience of traditional enterprises can integrate the potential energy of traditional business upgrading and emerging technologies, show great development potential in the market, and enable the deepening of industry reform.