Gartner Releases 2019 Cloud Computing Market Data Report: Some Companies Are Happy, Others Are Sad

Gartner Releases 2019 Cloud Computing Market Data Report: Some Companies Are Happy, Others Are Sad

199IT News, April 24th. Recently, Gartner, a global IT industry research benchmark, released the latest 2019 cloud computing market data report. The report shows that the global cloud computing market continued to grow rapidly in 2019, with a year-on-year increase of 37.3%, and the overall market size reached US$44.5 billion.

The industry consensus is that with the further deepening of global digitalization caused by the COVID-19 pandemic and the full-scale development of China's new infrastructure, enterprises' demand for cloud computing will be further released, which will be beneficial to the entire cloud computing market.

Judging from the public relations articles of several leading cloud computing companies, Alibaba Cloud, Tencent Cloud and Huawei Cloud are all very happy and their public relations work is quick, which is commendable.

1. Alibaba Cloud: (The following content is excerpted from a public relations article)

Title: Gartner releases 2019 cloud computing market data: Alibaba Cloud ranks third in the world and first in Asia Pacific
Gartner: Alibaba Cloud ranks third globally and first in Asia Pacific, with its market share increasing and the gap with Google widening
Gartner: Alibaba Cloud ranks third in the world and first in Asia Pacific

In 2019, Amazon, Microsoft, Alibaba Cloud, and Google ranked the top four in the global cloud computing market. Alibaba Cloud's global market share rose from 7.7% to 9.1%, further widening the gap with Google; in the Asia-Pacific market, Alibaba Cloud ranked first, with its market share rising from 26% to 28%, close to the total of Amazon and Microsoft.

Data shows that the global cloud computing IaaS market continued to grow rapidly in 2019, up 37.3% year-on-year, with an overall market size of US$44.5 billion. The global 3A market structure is stable, but Amazon's market share has been squeezed by Microsoft and Alibaba Cloud, falling from 48% in 2018 to 45%. Alibaba Cloud ranked third, with the fastest market share growth, up from 7.7% in 2018 to 9.1%.

Compared with the global market, the Asia-Pacific market is growing faster, with the cloud computing market size increasing by 50% year-on-year. In the Asia-Pacific market, Alibaba Cloud ranks first, and its market share has further increased from 26% in 2018 to 28.2%, approaching the total of Amazon and Microsoft. During the same period, Amazon's share fell from 18% last year to 17%.

Recently, Alibaba Cloud announced that it will invest 200 billion yuan in the next three years to tackle the R&D of major core technologies such as cloud operating systems, servers, chips, and networks, as well as to build future-oriented data centers. Another 200 billion yuan investment in three years means that Alibaba Cloud's data center and server scale will triple again, aiming to become the world's largest cloud infrastructure.

The Financial Times commented that Alibaba Cloud's market share in China has been steadily increasing in recent years, accounting for 46% of the Chinese market in the fourth quarter of 2019. The COVID-19 pandemic has stimulated the market demand for cloud infrastructure and technology behind remote work, and after the pandemic, companies and institutions will significantly accelerate their cloud migration.

Analysts generally believe that if Alibaba Cloud further expands its investment in cloud infrastructure and core technologies, "it is highly likely that it will catch up with Amazon in the next few years."

2. Tencent Cloud (the following content is excerpted from the PR article)

Title: Gartner: Tencent Cloud ranks fourth in the Asia-Pacific market and fifth in the global market, with growth rates exceeding 100%

On April 23, international research organization Gartner released the latest cloud computing market data. The report shows that in 2019, Tencent Cloud ranked fifth in global market share, with a growth rate of 111%, and ranked fourth in Asia-Pacific market share, with a growth rate of 107.3%.

Gartner report shows that the global cloud computing market continued to grow rapidly in 2019, with a year-on-year increase of 37.3%, and the overall market size reached US$44.5 billion.

In the global market, Tencent Cloud's share rose one more place, from 18th in 2017 and 6th in 2018 to 5th in 2019. Among the top 5 global vendors, Tencent Cloud's growth rate reached 111%, ranking first, and its growth rate in the global and Asia-Pacific markets exceeded 100%.

According to Tencent's latest financial report, Tencent Cloud's annual revenue exceeded 17 billion yuan in 2019, with a growth rate that continued to be higher than the market, and the number of paying customers exceeded 1 million. During the reporting period, Tencent Cloud successfully expanded its market share and continued to expand its business in vertical fields such as Internet services, tourism, people's livelihood services and industry, and took advantage of its connection with consumers to help enterprises with digital upgrades.

Currently, Tencent Cloud's infrastructure covers 26 geographic regions in five continents, operates 53 availability zones, has an EB-level data storage scale, and has deployed more than 1,300 acceleration nodes worldwide.

In 2019, Tencent Cloud achieved milestone breakthroughs in many core indicators. In May 2019, Tencent announced that it had achieved the "double hundred" milestone of more than 1 million servers and 100T bandwidth peak, becoming the first company in China and the fifth in the world to have more than one million servers, and the first company in China to reach 100T bandwidth peak.

At the same time, Tencent Cloud continues to increase its investment in new infrastructure. Relying on data centers around the world and the combination of leading big data, artificial intelligence, Internet of Things and other capabilities with smart industry scenarios, Tencent Cloud has become a pioneer in new infrastructure. It will continue to increase investment in the future to build information highways and provide acceleration for industrial Internet.

3. Huawei Cloud: (The following content is excerpted from the public relations article)

Title: Gartner: Huawei Cloud ranks top 3 in China and top 6 in the world in IaaS market

Huawei Cloud ranks among the top three in China in the Gartner report, does this indicate future changes in the cloud computing market?

Gartner's latest research report "Market Share: IT Services, Worldwide 2019" shows that Huawei Cloud's global IaaS market ranking has risen to sixth, with a growth rate of 222.2%, the fastest growth rate in the world, and ranks among the top three in the Chinese market.

In China, HUAWEI CLOUD provides services to more than 30 national ministries, more than 600 government and public utilities, 30 of the top 50 Internet companies, more than 20 large automobile companies, and 14 companies in the field of genetics, covering multiple industries such as government, finance, Internet, automobile manufacturing, and genetics. Overseas, HUAWEI CLOUD has successively launched services in Singapore, Chile, Brazil, Mexico, and Peru, and operates 45 availability zones in 23 geographical regions around the world with partners.

Last year, Huawei Cloud developed 10,000 consulting partners, with partners contributing more than 60% of its revenue, and established strategic partnerships with many top consulting firms and operators around the world. By the end of 2019, Huawei Cloud had launched more than 200 cloud services and more than 190 solutions, including 69 Huawei Cloud Kunpeng cloud services and 43 Ascend cloud services; 3 million enterprises and developers were developing cloud services based on Huawei Cloud.

4. Baidu Cloud (the following is based on media reports)

While the leaders were rejoicing, Baidu was the most depressed. Yesterday, the media reported that the former Baidu Cloud General Manager Yin Shiming and Deputy General Manager Zhang Zhiqi had recently left Baidu. According to 36kr, Baidu Cloud had made three structural adjustments in the past year, and it was rumored that Baidu's senior management was not satisfied with Baidu Cloud's performance.

In September 2019, Baidu announced the integration of the Intelligent Cloud Business Group and the CTO system, and Yin Shiming's team reported to the Group CTO Wang Haifeng.

On January 8, 2020, Baidu integrated ACG (Baidu Intelligent Cloud Business Group), AIG (AI Technology Platform System), and TG (Basic Technology System) into the "Baidu Artificial Intelligence System" (AI Group, abbreviated as AIG), which will continue to be led by Baidu CTO Wang Haifeng.

On March 11 this year, Baidu CTO Wang Haifeng sent an internal email announcing adjustments to Baidu's Intelligent Cloud Business Group (ACG). Among them, Yin Shiming and Zhang Zhiqi resigned from their original positions and made other arrangements. The heads of Baidu Intelligent Cloud's cloud computing, intelligent finance, intelligent customer service, channel ecology and other business units will report to Wang Haifeng.

Some media analysts believe that Yin Shiming's team's strategy of expanding its business has failed to keep up with the trend, and is one of the reasons why Baidu's cloud business has not improved.

Huatai Securities' industry research report believes that under the epidemic, the country has continuously increased its policy support for "new infrastructure", which is expected to accelerate the pace of digital transformation from top to bottom, drive a significant increase in demand for data traffic, storage, etc., and promote further improvement in the prosperity of the cloud computing industry.

Looking forward, the current Chinese cloud computing market is in a stage of development with great momentum, and many cloud computing players are gearing up to make a big move. I believe that in 2020, the Chinese cloud computing market will usher in a new chapter of development, and all players will be able to reap their own rewards.

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