Amazon Wants to Snatch the Chinese Cloud Computing Market

According to digitimes, in the fast-growing Chinese cloud computing market, Amazon is expanding its team. In fact, the US-based company is hoping to win more from Alibaba and Tencent’s market share.

Although Amazon’s cloud computing service AWS has more than 40% of the world’s share, in China, the market is dominated by Alibaba and Tencent. In response, Amazon AWS Enterprise and cloud computing consultant Xia Zhang said recently that AWS has been expanding its team in China.  He also added Amazon is hoping to achieve business growth in proportion to its manpower increase.

Also Read: Amazon Sues Its Former sales executive of Amazon Cloud Services

Zhang Xia said that China’s cloud computing market is growing steadily every year. IDC data shows that China’s public cloud infrastructure as a service (IaaS) market is dominated by Alibaba’s cloud subsidiary, with a share of 43.2% in the first quarter of 2019. In addition, Tencent’s market share is 12.2%, China Telecom is 8.4%, and Amazon AWS is 6.4%. Behind AWS are Jinshan Cloud, Huawei, and Baidu, all with a market share of approximately 5.2%.

However, there has been some observation that the cloud computing market is currently showing in demand. It’s related to the fact the business sector is going through the first wave of adjustments after the surging growth in the past few years. In this regard, Zhang pointed out that the Greater China region is not seeing a similar trend as most enterprises in the region did not start accepting cloud platforms until recently.

‘At the moment, most enterprises in Greater China only have 20% of their IT budget used in cloud computing-related applications and only 20% of these enterprises’ data are stored in public cloud systems, meaning there is still room for improvement.’

IDC data also shows that the size of China’s public cloud market in the first quarter of this year was $2.46 billion, an increase of 67.9%. In this market, IaaS grew by 74.1% year-on-year, while PaaS (Platform as a Service) increased by 101.9% year-on-year.

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