A research firm revealed China's cloud infrastructure market improved by 66.9 percent yielding 3.3 billion USD in the last quarter of 2019. The result was before the emergence of the public health crisis. The report also revealed that China is the second-largest cloud infrastructure globally earning a 10.8 percent share of the industry.
The revenue earnings of China's cloud infrastructure market grew by 66.9 percent and generated 3.3 billion USD during the fourth quarter last year. The results put China on a 13. 2 billion USD run rate, research firm Canalys reported. The United States is the leading cloud infrastructure market to date with China trailing as the second.
Alibaba was referred to as the strongest company in the industry dominating its relevant market. Tencent was ranked second in China with 18 percent of the market share. Microsoft's Azure and Baidu AI Cloud came third with only 8.8 percent. The value was equivalent to Google's US market share. In the United States, Amazon is the top-performing cloud service company while AWS came in second.
According to an analyst with Canalys Matthew Ball, the fourth quarter yields of 2019 indicated that the growth drivers of the market were already emerging before the public health crisis surfaced. He claimed that there has been an ongoing demand for cloud computing and storage services last year. The said rising demand was blamed on the need for public and private organizations to digitize their projects by building platforms and applications. These new features were said to have developed new services for market players that contributed to their respective company growths as well.
Ball added that online gaming was the largest consumer base. He also revealed that healthcare, finance, industrial, and transport sectors were also among the growth drivers of the cloud market. He then suggested that facial recognition technology would also be a part of the smart city sector that also shows great growth potential.
Ball then perceived that Alibaba has yet to achieve its best market performance yet. He claimed that the ongoing public health crisis contributed to the significant increase in demand for its products and services. He forecasted that the situation would generate more digital projects once business activity restores to normal in China.
Ball also highlighted the possibility of more businesses entering the market and become constant paying customers. The social distancing mandate of many states around the world would result in rises in demand for cloud services and that cloud companies would offer free options to them as the public health crisis persists.