Reporter | Jiang Jingling
Operators are expanding in the cloud services market. On October 26, the “China Public Cloud Service Market (2022 First Half) Tracker” report released by the International Data Corporation IDC shows that in the first half of 2022, in China’s public cloud IaaS market, China Telecom’s Tianyi Cloud has an 11% market share. It surpassed Tencent for the first time and rose to third, with a year-on-year increase of 1.4pp; in the IaaS+PaaS market, China Telecom Tianyi Cloud ranked fourth with a 9.4% share, with a year-on-year increase of 1.2pp.
On the whole, the domestic public cloud market still maintains growth, but the growth rate is slowing down. According to an IDC report, in the first half of 2022, the overall scale of China’s public cloud service market (IaaS/PaaS/SaaS) reached US$16.58 billion, of which the IaaS market grew by 27.3% year-on-year, and the PaaS market grew by 45.4% year-on-year. From the perspective of the IaaS+PaaS market, the first half of 2022 will increase by 30.7% year-on-year, down 18% from the growth rate (48.7%) in the first half of 2021.
Due to the fierce market competition and the continuous development of market segments, the concentration of the domestic public cloud market has declined. According to an IDC report, in the first half of 2022, the combined market share of the top five Chinese public cloud IaaS market shares was 75.5%, down 1.1 percentage points from the second half of 2021.
At the same time, the market structure of the top five leading manufacturers ushered in a slight change. The IDC report shows that in the first half of 2022, the top five domestic public cloud IaaS layer market shares are: Alibaba Cloud 34.5%, Huawei Cloud 11.6%, China Telecom Tianyi Cloud 11%, Tencent Cloud 10.3%, AWS 8.1%. Compared with the second half of 2021, Alibaba Cloud’s share fell by 3.3 percentage points, Huawei Cloud increased by 0.4 percentage points, Tianyi Cloud increased by 0.7 percentage points, Tencent Cloud decreased by 0.6 percentage points, and AWS increased by 1.7 percentage points.
According to the analysis of the IDC report, at present, the contribution of the Internet industry to the public cloud market continues to decline, while the pattern of public cloud in the non-Internet industry needs to be opened up. Jiemian News reporters have reported that due to the outbreak of the demand for digital transformation of central state-owned enterprises, the three major operators with deep central state-owned enterprise genes are considering cloud services as an important growth engine.
At the end of July, the state-owned assets supervision cloud service led by China Telecom officially announced the launch. Liu Lihui, assistant research director of IDC China, told Jiemian News that National Cloud will have a certain impact on the original public cloud service providers, especially IaaS service providers. This impact is mainly for the future growth market, and they may move more towards the industry chain. The back-end provides technical, product and experience support for the construction and operation of the National Cloud, rather than directly appearing as the main body of cloud service operations.
Or benefiting from this, according to the financial reports for the first half of 2022 disclosed by the three major operators, the three companies’ cloud business revenue growth in the first half of the year was astonishing, all exceeding 100%. Among them, China Telecom’s Tianyi cloud revenue was 28.1 billion yuan, a year-on-year increase of 100.8%; China Mobile’s mobile cloud revenue was 23.4 billion yuan, a year-on-year increase of 103.6%; China Unicom’s Unicom cloud revenue was 18.7 billion yuan, a year-on-year increase of 143.2%. Among them, the revenue of Tianyi Cloud and Unicom Cloud in the first half of the year has exceeded the cloud business revenue of the two companies in 2021.
The IDC report pointed out that although the competition among cloud service vendors continues to intensify, cloud service vendors have entered a stage of rational development, gradually moving from focusing on revenue and high growth to focusing on profits and sustainable development. In addition, while cloud service manufacturers increase investment in cloud product cost-effectiveness, security, and technology optimization, they also strengthen the construction of industry ecology and their own industry capabilities, enabling the successful digital transformation of thousands of industries.