The cloud computing industry has a development law that focuses on asset investment first, and then realizes large-scale benefits. Ucloud is still in the stage of large amount of capital investment and customer accumulation in the short term.
According to the “White Paper on Cloud Computing (2018)” issued by the China Academy of Information and Communications Technology, it is estimated that by 2021, the global cloud service market size will reach USD 246.1 billion, with a compound annual growth rate of approximately 22%. Although China started late, it has now entered a period of rapid industrial growth. It is estimated that in 2021, the scale of China’s public cloud construction market will reach 90.26 billion yuan, with a compound annual growth rate of approximately 43.7%.
At present, the Matthew effect of the cloud computing industry is obvious. Head companies such as Alibaba Cloud, Tencent Cloud, China Telecom, and AWS have already occupied most of the market share. According to the 2018 public cloud IaaS survey report released by IDC, Alibaba Cloud has occupied over 40% of the market share, and Tencent Cloud also has 11% of the share. Relying on the advantages of group resources, these companies have obvious advantages in terms of business scale, brand awareness, business system, and financial strength.
UCloud introduced in this article is a third-party cloud computing service provider , known as China’s “first share of cloud computing”. After the opening, the market value rose to 30 billion yuan. UCloud was founded in 2012. The company independently develops and provides computing, network, storage and other basic resources, as well as basic IT architecture products, big data, artificial intelligence and other products and industry solutions built on these basic resources. Cloud and hybrid cloud provide services for users, of which public cloud is the company’s main source of revenue.
Facing pressure from industry giants, what are the advantages, disadvantages and growth points of UCloud? This article will analyze the company’s operating conditions, competitive advantages, risks faced and future development direction for everyone.
First, let’s look at the company’s revenue in recent years.
Overall, The company’s revenue has maintained an average annual growth rate of 50%. The prospectus shows that from 2016 to 2018, the company’s total revenue was 520 million yuan, 840 million yuan and 1.18 billion yuan. Among them, the main business (public cloud, hybrid cloud, private cloud and others) accounted for over 99% of total revenue.
Segmented into business areas, public cloud is the main source of business revenue, accounting for over 88%. In 2016-2018, the revenue reached 470 million yuan, 760 million yuan and 1.01 billion yuan, and the growth trend is relatively stable.
Specifically to customer sources, Internet corporate customers are the main source of the company’s current revenue. The prospectus mentions that the revenue contributed by customers in the Internet sector accounts for the proportion of total revenue