In the Second Quarter of 2024, Cloud Infrastructure Services in the Chinese Mainland Show Growth and Market Share Distribution
TapTechNews September 26th news, Canalys released a report today. In the second quarter of 2024, the spending on cloud infrastructure services in the Chinese mainland reached 9.4 billion US dollars (about 66.073 billion yuan currently), with a year-on-year growth of 8%. Alibaba Cloud, Huawei Cloud, and Tencent Cloud continue to dominate the market, accounting for 71% of the market share together.
The report said that the current leading cloud vendors are focusing on deeply integrating AI with cloud computing to tap new growth points. The impact of AI on cloud consumption is increasingly significant and gradually becomes a key driving force for business expansion. The customer base of the AI platforms provided by the leading cloud vendors is continuously expanding, and it is expected to continue to drive the growth of cloud consumption in the second half of 2024. TapTechNews attached the specific ranking as follows:
1. Alibaba Cloud maintains its leading position in the Chinese mainland market, occupying 36% of the market share.
Its overall growth is mainly driven by the public cloud business, which achieved double-digit growth in the second quarter of 2024.
The success of AI products has also made important contributions to the growth recovery of Alibaba Cloud. The number of its paying users has reached a record high, and the quarterly growth rate has reached 200%, while the revenue continues to grow at a triple-digit rate.
This momentum prompts Alibaba Cloud to further increase its investment in AI. In July 2024, Alibaba Cloud launched the AI assistant Xiaoying, which provides knowledge bases and decision support to realize the automatic learning and execution of tasks.
2. Huawei Cloud consolidates its position as the second largest cloud vendor, with a market share of 19% and maintaining a stable growth of 13%.
Huawei Cloud is steadily advancing in the field of AI. In June 2024, Huawei Cloud launched the latest version of the AI large model, Pangu 5.0, and provided a variety of parameter configurations to meet the diverse training needs of customers.
In terms of the channel partner ecosystem, Huawei Cloud announced to jointly launch the partner capacity program with TCL, Ernst & Young, and Softtek to enhance the capacity of partners in product and scenario technology. Currently, about 4,500 partners have joined this program and cooperated with Huawei Cloud to develop more than 500 solutions.
3. Tencent Cloud ranks third with a market share of 16%.
In June 2024, Tencent Cloud announced to provide 100 million Tokens of the Hunyuan large model for free to newly migrated enterprise users to attract more customers to join.
Tencent Cloud also launched various versions of the Hunyuan large model including Pro, Standard, and Lite, and provided free dedicated migration tools and services to meet the diverse needs of users.
At the Tencent Global Digital Ecosystem Conference in September 2024, the company announced that the number of its partners with an annual revenue of more than 1 million yuan (about 142,000 US dollars) has increased by 150%.
Recognizing the importance of the service capacity of partner services to enhancing the channel ecosystem, Tencent Cloud launched a new partner program in September 2024 to develop partners with product sales and service experience channels, and simultaneously trial-run the MSP service provider certification system.
Canalys analyst Zhang Yi said: After a period of fier ce competition, the leading cloud vendors have realized that only by reducing prices cannot continuously drive the growth of customer spending, but also need to improve the competitiveness of their services. They are now turning their focus to innovation and cooperation within the partner ecosystem as a differentiated strategy to attract and retain customers. Cloud vendors are actively cooperating with channel partners to develop customized AI solutions for specific industry needs. In the second quarter of 2024, the revenue generated through channel partners accounted for 26% of the total revenue of cloud computing in China, and it is expected that this proportion will further increase. Cooperating with professional partners helps cloud vendors enhance the value of their AI large models and at the same time address customers' concerns about the complexity of AI deployment.
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