Global brands like Amazon AWS and Microsoft Azure have cause for worry at least in Asia Pacific (APAC). Synergy Research Group reported that Q1 data suggests that Chinese cloud providers are taking on share with Alibaba, Tencent and Sinnet are now in the “top six leadership table” with Baidu just in the outskirts of the top ranking. Google makes up the top six in APAC.
In aggregate Chinese cloud providers now have a 40% share of the APAC public cloud market – thanks in part to the size of the home market – China, where regulation have favoured the local players. Huawei and Kingsoft round out the top six cloud players in the country.
“While China remains a very tough proposition for the world’s largest cloud providers, who are all US-headquartered firms, the Chinese cloud providers are riding on the back of huge growth in their local cloud market,” said John Dinsdale, chief analyst and research director, Synergy Research Group.
“Language, cultural and business barriers will cause some of those Chinese companies to remain tightly focused on their home market, but others are determined to become major players on the global stage. Putting China to one side, in the rest of the world Alibaba is already the seventh largest player in public IaaS and PaaS markets,” concluded Dinsdale.
Public IaaS and PaaS are the most prominent segments of the cloud infrastructure services market and account for the bulk of the revenues, with the balance coming from managed or hosted private cloud services.