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Based on research and analysis of the public cloud market, Frost & Sullivan (hereinafter referred to as "Frost & Sullivan") has released the latest "China Public Cloud Market Research Report".In 2018, the market scale of China's public cloud was 53.13 billion yuan, and in the first half of 2019 alone, it reached 41.51 billion yuan.In the next five years, driven by the development and application of new technologies such as AI/IoT/5G/big data/blockchain, as well as policy incentives, the market scale of China's public cloud will further grow.Frost & Sullivan expects that the market scale of China's public cloud is expected to reach 525.65 billion yuan by 2023.
The public cloud market is growing rapidly with a clear head effect
In the first half of 2019, among China's public cloud market share, Alibaba Cloud, Tencent Cloud, Tianyi Cloud, Huawei Cloud, and AWS ranked in the top five in the industry, with market shares of 28.5%, 14.0%, 6.5%, 6.2%, and 5.4%, respectively. The top five manufacturers accounted for more than 60% of the entire market share.
China's public cloud market share, research in H1 2019 & prediction in H2 2019
Source: Frost & Sullivan Research Institute
Market share of the top five IaaS service providers in China's public cloud market, research in H1 2019 & prediction in H2 2019
Source: Frost & Sullivan Research Institute
AI, IoT, 5G, big data technologies drive the development of diversified cloud services
The rapid development of 5G will accelerate business innovation in the Internet industry, promoting the prosperity of new business forms such as VR, AR cloud games, and high-definition videos; richer industry formats will generate diversified public cloud service demands, thereby triggering further growth of the public cloud market. The acceleration of the commercialization process of 5G will, on the one hand, spur multiple growths in edge and client data, requiring traditional data centers to accelerate iteration and upgrade to meet their higher IT infrastructure requirements, driving an increase in demand for public cloud; on the other hand, 5G will accelerate the interconnection of everything, accompanied by the research and application of new technologies such as IoT, big data, artificial intelligence, AR/VR, etc., new Internet business forms such as AR cloud games, high-definition videos, live streaming, and information flow are accelerating, and the application scenarios of public cloud services will continue to broaden, driving the public cloud industry towards a diversified trend.
Accelerated cloud adoption by governments and large enterprises, hybrid clouds becoming a future trend
Currently, government and enterprise cloud adoption is entering deep waters, with new technologies integrating more closely with industries, making hybrid clouds an inevitable trend.By choosing hybrid clouds, relevant institutions and enterprises can meet both business needs and regulatory requirements. In addition, facing the complex international situation and cybersecurity landscape, data security protection and self-control of software and hardware have become the focus of attention for domestic institutions and enterprises. Among domestic manufacturers, cloud providers represented by Tianyi Cloud and Huawei Cloud play an important role in promoting the process of self-control by governments at all levels in China. In July 2019, the newly jointly issued "Public Cloud Service Security Assessment Measures" by the Cyberspace Administration of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Finance has greatly promoted cloud security technology research and development, improved the evaluation system for cloud service providers, and established a cloud service security assurance system. In the assessment of "Public Cloud Capability Level 1 Certification", only Alibaba Cloud, Huawei Cloud, and Tencent Cloud have obtained qualification certification, demonstrating the exemplary role of giant manufacturers in the cloud service field.
The partner ecosystem has become an indispensable part of the public cloud service industry chain
