Despite the farewell of former Chairman and Co-founder Jack Ma from Alibaba last week, the company retained its spot on top of China's cloud computing market for the second quarter of 2019, a new research report revealed.
According to Tech in Asia, research firm Canalys revealed in its latest report that Alibaba accounted for 43 percent of China's overall cloud computing market growth during the second quarter.
Alibaba's cloud computing arm saw its revenues expanding by 66 percent in Q1. Industry analysts said the spike in revenue that reached 7.8 billion yuan or $1.1 billion, was driven largely by a hike in average revenue from each customer.
China's total spending on cloud computing segments racked up $2.3 billion year-on-year for Q2, with Tencent Cloud taking the second spot. The gaming giant took home a share of 17.4 percent in the market.
For Chief Executive and Founder Pony Ma Huateng, Tencent's cloud business can transition into a network that will connect the industrial internet to consumers around the world who use the internet to explore services and products in the sector.
Baidu, on the other hand, showed strong growth as well as it racked up 8.7 percent of China's cloud computing market. Both Baidu and Tencent are said to be displaying good progress in the market as the country continues to pursue high-end technologies.
While Baidu has yet to increase its investments in the cloud unit, the online search giant is already working to boost this arm of its businesses.
During the World Artificial Intelligence Conference (WAIC) late last month, Baidu unveiled a new cloud server that runs on the Kunlun chip. Kunlun is the internet firm's artificial intelligence (AI) chip that it developed as part of its work in the cloud computing segment.
Research Analyst at Canalys, Daniel Liu, noted that for the three Chinese tech giants, "boosting revenue from cloud services" is one of the main strategic priorities since they noticed that domestic demand continues to grow.
Meanwhile, Huawei is also joining the ranks of Chinese tech behemoths that explore opportunities in the cloud computing circle. The company expressed its desires to build the necessary infrastructures to help the world transition into computing power.
Statistical computing is the primary focus of Huawei as it will encourage image and voice recognition. The company AI computing will be the future of buildings and other infrastructures in the near future.
China's tech giants are also supporting the country's targets in leading the way towards high-end technologies that the world has yet to experience.
