When technology is homogenized, what can cloud computing do?
Editor’s note: This article is from WeChat public account“Technology tells the story” (ID: xiangling0815), the author has bellmed.
Tencent and Ali have released quarterly financial reports, making the two cloud computing industries once again become hot topics of discussion.
Tencent took the lead in the list. Tencent’s Q2 financial report for the fiscal year 2019 shows that “financial technology and corporate services revenue” revenue was 22.88 billion yuan, excluding the interest income of the reserve balance, which increased by 57% year-on-year. As always, Tencent did not separately disclose cloud computing revenue in its quarterly earnings report, but mentioned “steady growth in cloud service revenue”. Reference Tencent Cloud’s growth rate in the past few quarters is in three digits. The “stable” in the financial report also shows that Tencent Cloud still maintains a high acceleration.
Alibaba’s Q1 financial report for the 2020 fiscal year is coming every other day. The financial report showed that the income of Alibaba Cloud in the quarter was 7.787 billion yuan, an increase of about 66%. It can be contrasted that in Q4 of FY 2019, Alibaba Cloud’s revenue was 7.726 billion yuan, a year-on-year increase of 76%. Alibaba Cloud’s revenue capability is still unique in China, but in contrast, the growth pressure of the leader is further evident.
For the growth momentum of the cloud computing business, the differences between the financial statements of the two parties are obvious. Alibaba Cloud said growth was “driven by an increase in average spending per customer”. Tencent said: “In terms of enterprise services, with the expansion of sales teams and product types, Tencent Cloud has acquired more major customers and large contracts, and revenue has grown steadily year-on-year.” – Ali focuses on the exploration of stocks, and Tencent’s Confidence lies in the rapid increase in increments.
In addition to the strength of the two, the cloud computing market competition is undergoing subtle changes.
Some small secrets hidden in the giant earnings report
The previous report released by Gartner shows that Tencent Cloud achieved a growth rate of 128% in the IaaS market in 2018. The overall market share ranked sixth in the world and fourth in the Asia-Pacific region, ranking first in the world. Before the financial report was released, Goldman Sachs also estimated that Tencent Cloud could contribute 3.8 billion yuan in revenue. This figure is close to half of Alibaba Cloud, and the income gap between the two sides has further narrowed.
In the past six months, Tencent Cloud and the “market-selling” actions directly announced by the partners and directly related to revenue have also confirmed the external evaluation.
In early June of this year, the four-party consortium of Tencent Cloud, Tencent Industrial Investment Fund, Donghua Software and Huati Technology won the bid for the “Smart Greenway” project in Chengdu, and Chengdu will construct the Jincheng Greenway and the commercials along the line. Facilities, paving the city’s “green network”, Tencent cloud provides intelligent solutions, the price of the single as much as 870 million yuan.
After the beginning of July, Tencent Cloud won the bid for the Changsha City Super Brain Project. According to the publicity of the Changsha Government Procurement Network, the bid price was as high as 520 million yuan, which was mainly used to build the “nerve center” of Changsha’s new smart city construction and accelerate Promote the digital development process in Changsha.
These actions are in line with the financial report “…to get more major customers and large contracts, and the revenue of cloud business grew steadily year-on-year.”
The above projects with considerable revenues all point to one area: government affairs. In fact, they can be seen to some extent as a large-scale replication of Tencent Cloud’s benchmarking in the government sector.
For example, the Changsha City Super Brain Project is the first landing project of Tencent’s urban development solution “WeCity Future City”, and WeCity is the main carrier of the scale replication of Tencent Cloud Benchmarking project in the government field.
WeCity was highlighted by Tencent’s statement in the statement that Tencent Cloud is not much. The official definition is “to use the basic products and capabilities of Tencent Cloud as the bottom layer for digital government, urban governance, urban decision-making and industrial interconnection. Providing solutions and reaching users through tools such as WeChat and small programs. Simply put, it is a brand new government business brand. Its purpose is to expand the experience of Tencent’s typical project “Digital Guangdong” in the government base in Guangdong to more regions.
Before this, Tencent Cloud’s government-related solutions have been implemented in 22 provinces across the country, achieving a three-fold, 25-fold increase in the government sector. It is not surprising that Tencent Cloud started “bulk copying” of government affairs cases through WeCity.
It can be seen that the “strategic cooperation agreements” signed by Tencent in the past may carry large-scale replication of WeCity in the future, resulting in considerable revenue growth.
In addition to government affairs, Tencent Cloud is also following a similar scale of replication in finance. Up to now, Tencent Cloud has 6000+ financial customers, more than 150 bank customers, and 3 of the four state-owned banks in the public information have cooperated with Tencent Cloud.
Looking at the international market, Amazon AWS revenue increased by 37% in the same quarter, Microsoft Azure increased by 64%, and Alibaba Cloud increased by 66%, and the growth rate declined relatively.
Although this can be thought of as the larger the volume, the harder it is to grow, but the change in style is followed. Ali Financial reported that Alibaba Cloud’s business growth this season mainly comes from the increase in average user consumption. This can be seen as a deep digging of existing stock users and also in the context of fast-replicating industries. Alibaba Cloud has achieved a shift in the number of customers to the quality of its customers. This process has not necessarily been a bad thing.
In fact, since last year, Alibaba has proposed the “Darwin Plan” based on its infrastructure advantages – delivered through a series of full-link ecosystem services including platforms, chips and micro base stations. The company has a self-contained IoT and the concept of “new manufacturing” – adding more IoT and artificial intelligence technologies, and deploying a flexible supply chain to achieve on-demand customization, which is obviously to promote the overall solution. The action to more customer groups.
When technology is homogenized, what can cloud computing do?
Before, the Deutsche Bank report once predicted that Alibaba Cloud’s market share will drop to around 40% in 2020, while forecasting Tencent Cloud’s market share will rise to 27%. This means that the total share of Ali + Tencent will further increase to 67%. From the data point of view, Ali, Tencent “package” led the cloud computing pattern has gradually formed.
Although the giants represented by Tencent and Ali have realized the growth of cloud business, in the first half of 2019, the homogenization phenomenon that cloud computing technology has already revealed has been further revealed, especially in the Chinese market, mainly in three Aspect:
A, segmentation, cloud computing no longer has “preference”, retail, government, finance, education, medical, industrial and other fields have layout;
B, scene ability, smart retail, smart finance, smart transportation, smart customer service, etc. become standard. “Smart XX” is no longer a patent of a certain family, cloud computing from “specialist” to “all-round”;
C, technology dimension, AI, big data, Internet of Things and other emerging technologies are bundled with cloud computing. All platforms are integrating technology, and cloud computing has become the carrier of emerging technologies.
Multiple homogenization leads to two chain reactions of “scale replication” in cloud computing.
One, from single advantage to more than copy speed
In the fresh retail war, all the early players emphasized their own advantages, such as the origin, such as the pre-position, then the industry matured, the advantage became the standard, and the winner was at the opening speed; p>
The same is true for cloud computing. Everyone has it, and the difference is weakened. The comparison is nothing more than the ability to copy the same case.
Second, “Benchmark customers” into duplicate keywords
The cloud computing customer is divided into two parts: one is a small and medium-sized customer who does not need to spend a lot of energy to develop. They buy the cloud computing service spontaneously like the C-end user buys the video member; the other needs to focus on the energy to pick The benchmark customers, the large-scale enterprise cooperation and urban cooperation that are common in public opinion, belong to this category.
The first type of customer gets a standardized service, there is no replication problem; the second type of customer has a large share of revenue and market influence (to some extent, it will indirectly affect the acquisition of the first type of customer) .
Obviously, cloud service providers are focusing on the large-scale replication and market development of the second category of customers.
For Tencent Cloud, the construction cycle of government affairs and finance has led to large-scale replication becoming an “energy storage” development. Although the huge revenues of 520 million and 870 million are visible, they are achieved at “ideal height”. I still need to have to endure the period before.
Unlike Aliyun, Tencent Cloud represents the strategic direction of Tencent’s transition to the second curve of the industrial Internet. Such a business can not only be used as a pure cloud computing business to carry out various revenue comparisons. Tencent must hope that it will be able to prove its strategic transformation success if it is fully mature and revenue data can be proved. Release it”.
Under the scale of replication and “energy storage” development, the competition of the whole industry or the killing from time to time, turned into the undercurrent of deliberate calm. Whether it is AWS, Azure, Alibaba Cloud or Tencent Cloud, this is both an opportunity to open the gap with the second camp and a new start for itself.
The cloud computing market, without stopping, will not give the hesitant a chance.