Analysis of the current pattern and future trend development of the cloud computing market

2016 is not over yet, and many cloud computing vendors have begun to take the initiative.

First, Amazon at the AWS Re: Invent conference high-profile said that its cloud computing business value is more than 100 billion US dollars, Nadella also in the Microsoft annual shareholders meeting in 2018 cloud computing business revenue reached 20 billion US dollars swearing. At the same time, Alibaba Cloud has stepped up its global distribution of data centers. Tencent Internet giants such as Tencent, Baidu, NetEase and Jinshan have been active in the field of cloud computing.

Different from entrepreneurs in live broadcast, VR and other fields, although there are UCloud, Salesforce and other well-known startups in the field of cloud computing at home and abroad, it can be recalled that the entire cloud computing market is more like a battlefield between giants. Here, the author carries out an inventory from the existing patterns of cloud computing, globalization strategies, and future trends.

Cloud computing in 2016 is a multidimensional war for Internet giants

Platformization and scenario, different choices of Internet giants

Interestingly, in the past year's layout, compared to the favor of operators and IT giants in infrastructure services, the swarming Internet giants have shown three different options.

One is a manufacturer that mainly provides IaaS services on behalf of Alibaba Cloud.

Thanks to Ali's consistent platform thinking, in 2016, Ali finally chose platformization as a business model in the field of cloud computing. Simply put, Alibaba Cloud mainly provides services such as network, computing, storage, etc., and attracts partners of PaaS and SaaS. At the same time, it plays the role of “application supermarket” and will be the PaaS or SaaS of its own and partners. Services are sold on demand to the customers they need on their established cloud computing platform.

The other category is the provider of scenario cloud services represented by Netease and Jingdong.

For this type of business model, each has a different statement, or a solution or vertical service, and "scenario" seems to be more popular in 2016. For example, Jingdong Cloud chose e-commerce cloud, logistics cloud, intelligent cloud, financial cloud, etc. as the main service, and it is not difficult to find a specific location. Coincidentally, NetEase Cloud has been on the same line of NetEase Hive, Yunxin, Seven Fish, Yidun and so on have the same intentions.

The third category can be seen as the combination of the first two categories. After all, "completion" has long been a familiar strategy for Internet giants. Typical representatives of this category are Tencent and Baidu.

On the one hand, trying to catch up with Ali and moving frequently on data center nodes, with this foundation, network, storage, computing, etc. naturally become core services. On the other hand, under the layout of domestic cloud computing “one super and strong”, Tencent and Baidu also saw the business opportunities of scene cloud services, especially the Baidu cloud in the second half of this year, targeting entertainment, finance, marketing and other industries. A series of solutions have been introduced.

It is worth mentioning that, whether it is platform or scenario, most of the Internet vendors have different choices to enter the market in the early stage, especially in the case of Alibaba Cloud, Baidu, Jingdong, NetEase, Jinshan, etc. The intention of competition is already very obvious.

What is certain is that the support of platform players such as Alibaba Cloud to PaaS and SaaS partners will inevitably harm the interests of other Internet giants.

In addition, when these Internet companies entered the cloud computing field, or for security reasons, most of them chose the self-built infrastructure platform, and as the cloud computing matured, they also cut into infrastructure cloud services.

For example, Jingdong Yunguan Online uses flexible computing, network, database, etc. as its main products. Netease Cloud also uses Netease Honeycomb, a container cloud product, to continuously enrich the database, CDN, object storage and other curves to enter infrastructure cloud services.

This also confirms a saying: "The future public cloud market will not survive dozens, but several." It seems that a pre-judgment is made for the existing market structure, and the next five years, cloud computing Competition in the market will gradually heat up.

In fact, it is not difficult to understand the possible outcomes from the perspective of customers. In the case of the popularity of cloud services, cross-platform will undoubtedly increase the cost and stability of services. Whether it's scenario or platform, the cloud computing competition driven by ambition will end in the same goal. The different choices made by Internet giants in 2016 are just beginning.

Going out and coming in, the competition and cooperation between China and the United States in cloud computing

In addition to the actions of the domestic cloud computing platform, Amazon, Microsoft, Oracle and so on finally officially landed in the Chinese market this year. Cloud computing's “going out” and “walking in” have become the two major labels for the domestic cloud service market in 2016.

It may be premature to use a globalization strategy to describe this trend. There are only a few global data centers in the world that have a lot of fanfare, such as Alibaba Cloud and Tencent Cloud. Only Amazon AWS, Microsoft Azure, etc. are officially entering the Chinese market. The head of the cloud computing vendor. Even so, China and the United States cloud computing can see two major trends in the competition and cooperation in 2016.

First, the localization of cloud computing.

Start with walking. Amazon AWS finally achieved "legal identity" three years after entering China, which is destined to be a landmark event in the history of cloud computing in China, and it has also labeled localization for cloud computing.

Similarly, Microsoft Azure targeted the Chinese market in 2010, but it was not until the end of 2012 that Microsoft officially landed in China after signing a cooperative operation agreement with Shanghai Municipal Government and Century Internet. In other words, foreign cloud service providers who want to enter the Chinese market must find local partners with licenses and capabilities.

Similarly, Chinese cloud computing vendors face the same problem when they enter overseas markets. For example, Alibaba Cloud has recently used data center nodes in Australia and the Middle East, and still has to comply with local laws and regulations and cooperate with local operators.

This also points to another problem. Under the trend of globalization, cloud computing vendors still face localized competition. For example, Alibaba Cloud’s market share in China is over 30%. At the same time, Amazon and Microsoft’s market share is Below 5%, it also faces "intimidation" from vendors such as Tencent, Baidu, Huawei, and NetEase.

One has intensified the competition situation of cloud computing. On the other hand, it has left enough room for new forces in cloud computing such as Netease and JD. At least at this stage, it has opened up potential competitions on cloud platforms such as Amazon and Microsoft. By.

Second, Chinese companies are still the gold owners of “globalization”.

Amazon, Microsoft and so on have spared no effort to enter the Chinese market. You can see that it is a cherish for the big cake in the Chinese market. After all, no matter the number of SMEs or the size of the market, the Chinese market can no longer be ignored.

In terms of actual actions, Microsoft is currently in the Chinese market. In addition to Azure as an infrastructure cloud service, Office 365 has captured domestic multinationals, large and medium-sized enterprises, small and medium-sized enterprises, entrepreneurs and individual users, and has become an important source of revenue. It is not difficult to understand why Oracle and Tencent Cloud signed a strategic cooperation agreement and cooperated with Alibaba Cloud to sell its cloud services.

For players who are planning overseas markets, such as Alibaba Cloud and Tencent Cloud, Chinese companies are still their main target customers in the early days. From the perspective of the big environment, more than half of large and medium-sized enterprises have begun to deploy overseas strategies. Such enterprises also have the demand for cloud services in overseas markets.

In contrast, China's cloud service providers seem to be more popular in terms of payment methods, native language communication, business response, laws and regulations, and cost control. This is the advantage of the domestic cloud computing platform, but it is also a last resort.

For Chinese cloud computing vendors, 2016 is the “first year” for global launch, and it also gives warnings. Not only do data center construction, brand marketing and partners are bigger shortcomings for Chinese manufacturers.

To be sure, 2016 will be the beginning of the global competition for cloud computing, and this competition is not just between the giants.

When Amazon and Microsoft gain a foothold in China, PaaS or SaaS service providers such as Salesforce and Oracle will also enter the Chinese market. Similarly, once Alibaba Cloud and Tencent Cloud have plundered a certain market share overseas, in addition to cooperating with local cloud service providers, excellent partners accumulated on the domestic platform will also be exported.

Even NetEase, Jingdong, Jinshan, etc., which are currently focusing on domestic cloud vendors, should be prepared for danger, not only to form an irreplaceable competitive threshold in technology and services, but also to expand their business in the time window before cloud computing competition heats up. Scope and accumulate enough loyal users.

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