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Public Cloud IaaS Market Insights

If you haven’t heard, there’s a new public cloud Infrastructure-as-a-Service (IaaS) leader emerging in the global technology marketplace: China.

Last year, China’s public cloud IaaS sector grew more than 86% to a value of nearly $5 billion – skyrocketing it to the world’s second-largest public cloud IaaS market position.

Since 2014, the nation has witnessed its global market share more than double – from 6.3% to almost 13% today. While Alibaba was China’s only tech giant to crack the world’s top 10 public cloud IaaS list back then, today organizations like Tencent, China Telecom, and Kingsoft have joined to create a handful of global leaders in the space.

What Made China a Public Cloud IaaS Leader?

While there are several factors that have contributed to the country’s impressive cloud technology growth, experts point to four unique factors:

1. Rapid Technology Development

Today, more than 800 million Chinese users have internet connectivity – creating the framework for a digital marketplace bigger than the U.S. and India combined. As more organizations seek technology-driven solutions to solve business challenges in the region, Chinese tech firms are well-positioned to create advanced products that satisfy these infrastructure demands.

2. Strong Policy Support

China’s policymakers have played a large role in the growth of the country’s homegrown technology solution providers. Unlike other nations, the Chinese government has promoted domestic companies by forcing outside organizations to provide their services through local partners – effectively controlling key relationships between suppliers and its massive buyer markets.

3. The World’s Biggest Middle Class

It’s no secret – a massive middle class is great for the economy. And, since China has more than tripled the size of its middle class since 2007, organizations have more money to invest in technology here than perhaps anywhere else.

4. Service Provider Investments

In recent years, Chinese technology firms have invested billions of dollars into new solutions, technologies, and infrastructure. In fact, since 2017 the nation’s three largest providers – Alibaba, Tencent, and Baidu – have accounted for almost 200 investments, mergers, and acquisitions alone.

Going forward, China can further it’s cloud leadership position by intensifying its research and development activities to increase service delivery capabilities and create more comprehensive strategies to satisfy evolving market needs.

Make Cloud Tech Work for You

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