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KEY STAT | Huawei grabs a quarter of China’s cloud management market in 2019

Written by Julianna Wu Published on 

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The steady growth of cloud computing in China allowed the niche sector for cloud system management to grow by 44.2% YoY.

Huawei’s cloud system and service management software took up a fourth of the USD 151 million market in China, according to IDC’s latest report.

Cloud system and management is a niche sector that bridges the fundamental infrastructure and services in cloud computing. Huawei Cloud Stack, for example, is a cloud management platform (CMP) that helps enterprises to manage their mixed usage of public and private cloud.

Driven by booming demand for cloud computing, the sector grew by 44.2% year-on-year in 2019. Some other smaller players in the market include Fit2Cloud and BoCloud.

IDC estimates that by 2021, more than 90% of Chinese companies will rely on a combination of local private clouds, public clouds, and their own servers to meet their IT infrastructure needs, stimulating the demand for CMP.

For comparison, only 8% of Chinese enterprises used mixed cloud services in 2018, according to Forward Research.

Right now, Alibaba is China’s biggest operator for fundamental cloud computing infrastructure, which contains Platform as a Service (PaaS), and Infrastructure as a Service (IaaS), as per Forward Research.

Cloud computing, among all other technologies, made it possible for China to monitor the health status of its 1.4 billion citizens amid the COVID-19 outbreak while moving offices, classrooms, and businesses online. In the latest government work report, China included cloud computing as part of its national directive for a more technologically advanced economy, under the umbrella of “new infrastructure” project.

Last week, Tencent (HKEX: 0700), the owner of the second-largest public cloud by market share domestically, announced that it has built more than one million servers for its cloud service in China.

At the same time, multinational service company Accenture acquired Alibaba-backed cloud marketing tool iTrigger, as reported by 36Kr.

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