In APAC’s cloud wars, Amazon maintains lead, and Tencent leapfrogs Google

Cloud services are booming across APAC, especially in China.

Image credit to 123rf.com.cn.

Tencent at the end of last year overtook Google’s market share in Asia-Pacific’s cloud infrastructure services industry, with the former holding a 5.8% share to the latter’s 4.7%, according to a new report by Synergy Research Group, a US-based market researcher.

That puts Tencent on rank 4 now, while Google takes 5th place, a shift from how things looked in Q 32018. Amazon’s AWS, meanwhile, maintained its lead in the region with a 24.1% share of the market. Second-placed AliCloud, Alibaba’s cloud service, claimed 15.9%, followed by Microsoft with 11.1%.

Part of Tencent’s upward trajectory in APAC is driven by the rapid growth of China’s cloud services market, which grew at a rate of 70% year-over-year, versus the global market average of 50%, last year. China’s cloud market is estimated to account for one-third of the total Asia-Pacific region.

In China, AliCloud reigned ascendant, with a 40.5% share of the market. Next-best Tencent Cloud hovers lower with a 16.5% market share. Closing out the country’s top-5 cloud infrastructure providers in 2018 were Sinnet, China Telecom, and China Unicom.

Data centers and cloud computing services have grown rapidly in China in recent years, and Chinese cloud companies are expected to expand their influence overseas in the coming years.

This comes as US companies struggle to gain a foothold on the mainland. In 2017, for example, AWS sold part of its Chinese cloud business to Sinnet in order to comply with local regulation.

Editor: Nadine Freischlad