China’s cloud expenditure hits $8Bn in Q2 2023
SHANGHAI, CHINA — China’s cloud infrastructure spending surged to US$8.7 billion in the year’s second quarter, marking a 19% annual increase.
According to a report by analyst company Canaly, tech giants Alibaba Cloud, Huawei Cloud, and Tencent Cloud dominate the market, accounting for 72% of the total expenditure.
Alibaba Cloud’s recent decision to include internal cloud consumption in its revenue after parting from its parent has slightly elevated direct sales. The firm maintains a 39% market grip post-restructuring, but its next moves are awaited, especially after its leadership transition.
Huawei Cloud, capturing 19% of the market, emphasized its AI-focused approach by introducing the “Pangu Model.”
Meanwhile, Tencent Cloud has been ramping up its AI capabilities, highlighted by the “Hunyuan” foundation model launch.
Canaly’s report added that AI integration is a priority for Chinese cloud vendors, recognizing its potential to boost cloud consumption.
“Generative AI presents a significant opportunity for channel partners to unlock new revenue streams and drive operational efficiencies,” said Canalys Research Analyst Yi Zhang.
“Channel partners can capitalize on this opportunity by offering AI services, developing AI software, offering advanced data services and participating in the resell, co-sell and upsell of AI products alongside complementary services.”
Aside from cloud infrastructure, China also dominates the global robotics industry, with 1.5 million robots operating in factories nationwide. This growth consolidates China’s dominance in the field, accounting for over half of global robot installations.
