The demand for cloud services in China is second to the US in the world. Alibaba Group Holding Ltd (NYSE:BABA) holds a market share of 40.1% in the cloud services market in China and occupies the top slot. Given the government stimulus measures and growing demand for cloud services amid the ongoing coronavirus crises, the spending in China on cloud services reached a record high of $4.3 billion in Q2 2020.
China-based companies maintain 78.7% cloud share
Huawei Cloud, Alibaba Cloud, Baidu AI Cloud, and Tencent Cloud collectively command a market share of 78.7% in the cloud services market of China. Alibaba occupies the first rank with a 40.1% market share whereas Huawei Cloud closely follows with a share of 15.5%.
Tencent Cloud increased its market share from 13.9% in Q1 2020 to 15.1% in Q2 2020. Baidu Cloud AI holds 4th slot with a market share of 8% in the cloud services space.
The US holds the first slot in the cloud services market worldwide
The US occupies the top slot in the cloud services market. It is home to industry leaders like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud. Other players in the cloud space of the US are IBM Cloud, Oracle, SAP, Salesforce, VMWare, RackSpace Cloud, and Alibaba Cloud.
AWS provides over 165 comprehensive services from its data centers worldwide. Several million customers worldwide are using AWS cloud services. It occupies the top slot in the world in offering cloud services.
Microsoft Azure stands second in offering cloud services worldwide. The company recently bagged a $10 billion worth contract from the federal government of the US. Its revenues are expected to reach $35 billion.
Google Cloud Platform offers various services that comprise a database, security, ML, AI, identity, storage, compute, DevOPS, and virtualization. The company offers its services in more than 200 nations across the world.
Oracle Cloud offers Database, governance, networking, storage, FastConnect, DNS Monitoring, Load Balancing, and Ravello. Its SaS offerings include EPM, SCM, CX, Data, Analytics, IoT, HCM, and blockchain applications.
Among these, AWS and Microsoft Azure offer the best cloud services in the world and maintain supremacy. The revenues of Paas expect to reach $58 billion in 2022. Saas will top the chart with higher revenues of $151.1 billion in 2022.