China’s cloud infrastructure services market grew 67%

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What:

  • Alibaba, Huawei, Tencent, and Baidu lead with a combined market share of 81%;

  • Cloud infrastructure services spending reached US$3.9 billion;

  • Alibaba Cloud continued to dominate, with 44.5% market share;

Why it's important:

  • in line with China's "New Infrastructure" deal, Alibaba Cloud announced plans to invest 200 billion yuan (US$28 billion) over the next three years to enhance its cloud software and hardware.

  • Baidu also announced massive plans to increase its investment in AI, cloud computing, data centers (5 million intelligent cloud servers by 2030), and chips over the next decade.

  • Meanwhile, rival Tencent announced a five-year $70bn investment plan.

Further Reading:

Canalys: China cloud services market Q4 2019

Caixin Global: Alibaba Takes Lead in China’s Cloud Services Market

Mirko Wormuth