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Alibaba Now Controls Nearly Half of China’s Cloud Service Market, Research Says

By Ding Yi / Mar 25, 2020 10:17 PM / Business & Tech

Photo: VCG

Photo: VCG

Alibaba Group Holding Ltd. grabbed the largest share of China’s cloud infrastructure service market in the fourth quarter of 2019, surpassing rivals Tencent and Baidu by a substantial margin.

For the three months through December, Alibaba Cloud controlled 46.4% of the market, which grew overall by 66.9% to $3.3 billion during the period, according to a report by research firm Canalys.

Tencent Cloud was the second-largest cloud service provider during the quarter, growing its share to 18%, while Baidu AI Cloud came in third with a market share of 8.8%, Canalys said, without specifying how much the three companies grew their shares from the same period in 2018.

However, the research firm released another report in June showing that Alibaba Cloud, Tencent Cloud and Baidu AI Cloud respectively accounted for 47.3%, 15.4% and 8% of the market in the first quarter of 2019.

As the Covid-19 pandemic increases demand for cloud services, Alibaba has opened its AI-powered platform to scientists studying how to treat and prevent the disease. In addition, Tencent has enabled affected workers to work from home using its collaboration services WeChat Work and Tencent Meeting, while Baidu has developed mapping tools to track the spread of the outbreak.

Canalys predicts that the outlook for cloud services in 2020 is positive as organizations shift more of their applications and businesses to the cloud due to Covid-19. Researchers think that the trend will continue even after the outbreak ends.

Contact reporter Ding Yi (yiding@caixin.com)

Related: WeChat Blocks Rival Business App as Remote Working Takes Off in China


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