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Alibaba Still Top Dog in China’s Cloud Services Market As Beijing Ups Ante in ‘New Infrastructure’ Plan

By Ding Yi / Sep 10, 2020 02:43 PM / Economy

Photo: VCG

Photo: VCG

In the second quarter of 2020, Alibaba maintained its spot as the biggest cloud services provider in China, where total spending on such services climbed to a record high of $4.3 billion due to growing demand amid the Covid-19 pandemic and government stimulus measures.

During the period between April and June, Alibaba Cloud, Huawei Cloud, Tencent Cloud and Baidu AI Cloud collectively controlled 78.7% of China’s cloud infrastructure services market, with Alibaba Cloud accounting for a whopping 40.1% market share, though the figure is 4.4 percentage points lower than its share in the previous quarter, according to a report by research firm Canalys.

Huawei Cloud ranked second with a market share of 15.5%, up from 14.1% in the first quarter, closely followed by Tencent Cloud, which grew its market share to 15.1% from 13.9% in the previous quarter, the report showed. Baidu AI Cloud was the fourth-largest cloud services seller during the period, maintaining its market share basically unchanged at 8%.

Overall, China’s $4.3 billion spend on cloud services, which represents a year-on-year increase of 70%, enabled the country to maintain its position as the world’s second-largest cloud services market in the second quarter after the U.S., home to industry leaders Google Cloud, Amazon Web Services and Microsoft Azure.

“Momentum in China’s cloud infrastructure services is set to accelerate,” said Canalys analyst Blake Murray in a statement. “An already growing market is being propelled by government initiatives, commitment by cloud service providers to invest, as well as increasing demand for digital transformation and online services in the post-Covid-19 economy,” Murray added.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Alibaba Takes Lead in China’s Cloud Services Market


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