Cloud Infrastructure Spending in China up 70% in Q2 2020, Alibaba, Tencent Lead Spending


Spending on cloud infrastructure services surged in China in the second quarter of 2020, amidst a global rise in expenditures in the sector.

Spending on the global cloud infrastructure services market saw a rise of 31% to USD$34.6 billion in the second quarter of 2020, according to a report from Canalys.

Canalys data further indicates that this expenditure was $8 billion more than the same period last year, as well as $3.5 billion ahead of the preceding quarter.

Amazing Web Services accounted for a 31% share of total spending on cloud infrastructure services in the second quarter, firmly entrenching it as the top provider, while Microsoft Azure’s market share hit a record 20%.

Google Cloud is the third biggest provider of cloud services with a 6% market share, while Alibaba Cloud came in fourth with a 5% share.

China’s cloud infrastructure services spending posted a 70% YoY rise in the second quarter of 2020 to reach a record-breaking $4.3 billion.

China is now the world’s second largest market for cloud infrastructure services, accounting for 12.4% of global spending, as compared to 9.6% in the second quarter of last year.

Alibaba Cloud is the leading provider of cloud services in China with a 40.1% market share in Q2, followed by Huawei Cloud (15.5%), Tencent Cloud (15.1%) and Baidu AI Cloud (8.0%). These big four vendors collectively accounted for 78.7% of the market.

Analysts say that the surge in cloud services spending in China has been driven by an increase in online and digital economic activity, which received a strong boost from the COVID-19 lockdown.

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