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On March 17, China Telecom released its 2021 annual performance report. In 2021, China Telecom achieved operating income of RMB 439.6 billion, a year-on-year increase of 11.7%; industrial digital business revenue reached RMB 98.9 billion, a year-on-year increase of 19.4%.
In addition to the basic business, the industrial digitalization sector supports the imagination of China Telecom, and also boosts the growth rate of China Telecom's overall revenue. As an important component of China's telecom industry's digital business, Tianyi Cloud doubled its revenue to RMB 27.9 billion Yuan, a year-on-year increase of 102%.
In addition, Ke Ruiwen, chairman and CEO of China Telecom, said that the company will actively explore the possibility of spin-off and listing of Tianyi Cloud under the conditions of compliance with regulatory rules.
The growth rate bucked the trend
China Telecom began to publish data on cloud business as early as 2016, but the statistical caliber is different, and the revenue data and growth data are incomplete and impossible to measure. On the whole, in the case of continuous growth in revenue, the year-on-year growth rate of China Telecom's cloud business has accelerated. The following data are all from China Telecom's financial reports over the years.
● In 2016 and 2017, the year-on-year growth rate of "cloud and big data business" was 55% and 70% respectively;
● In 2018, "cloud business" increased by 85.9% year-on-year;
● In 2019, the "cloud business" revenue reached 7.1 billion yuan, a year-on-year increase of 57.9%;
● In 2020, the revenue of "full network cloud business" will reach RMB 13.8 billion (full network cloud includes industry cloud, family cloud and services directly related to cloud access);
● In 2021, e-surfing cloud revenue will double to RMB 27.9 billion, a year-on-year increase of 102%.
Tianyi Cloud’s revenue in 2021 exceeded expectations, especially since the growth rate of other cloud vendors has mostly dropped below 50%, and its revenue data is somewhat surprising. In fact, China Telecom has already announced in its 2021 interim results that the revenue of Tianyi Cloud in the first half of the year reached 14 billion yuan, a year-on-year increase of 109.3%, exceeding the total revenue for the whole year of 2020.
Government and enterprise customers may be an important reason for the rapid growth of Tianyi Cloud's revenue. It is generally believed in the industry that the Internet created the first stage of demand for cloud computing, but government and enterprise customers' cloud access will determine the final cloud service market structure. Compared with government and enterprise customers, Internet customers were born later and are new additions to the cloud computing market. Demand, as cloud services move towards deep water, government and enterprise customers are the basic disk of the cloud computing market.
As an operator cloud, Tianyi Cloud's market style is relatively low-key, so that it is occasionally "ignored". The performance is a strong proof that Tianyi Cloud is more popular with cloud computing customers, mainly government and enterprise customers. The financial report also mentioned that Tianyi Cloud has won multiple orders for cloud business and CDN business projects worth more than 100 million yuan in the fields of government affairs, public utilities, Internet, and industrial manufacturing.
In terms of customer ranking, the Internet is only the third type of major customer, and government affairs and public utilities are ranked ahead of the Internet. Due to multi-cloud considerations, Internet industry customers also tend to find a non-Internet cloud provider as a supplement. It is understood that Tianyi Cloud has created more than 4,300 benchmark projects, and the number of commercial customers has exceeded 2 million.
2021 is the key node of Tianyi Cloud
The change in statistical caliber represents China Telecom's attitude towards cloud business. At the beginning, cloud business was only one of China Telecom's many businesses. Later, China Telecom made it clear that cloud business is China Telecom's main business, and its importance has greatly increased. At the same time, China Telecom is also continuously integrating more cloud-related businesses into Tianyi Cloud.
At the beginning of 2021, it was reported that Tianyi Cloud will carry out cloud business as an independent company. An operator executive told Titanium Media App earlier that the system is one of the important reasons why China Mobile Cloud and China Unicom Cloud lag behind Tianyi Cloud. Since its establishment in March 2012, E-surfing Cloud has insisted on market-oriented operation, which has also kept E-surfing Cloud from being tied down. Independence means that E-surfing Cloud has more room for maneuver and greater autonomy.
In addition, Tianyi Cloud is different from other Internet cloud service providers. Internet cloud service providers do not have many historical assets, and China Telecom has many businesses that can be incorporated into the Tianyi Cloud system. This is one of the reasons for the change in China Telecom's statistical cloud revenue. .
China Telecom Cloud Computing Branch, China Telecom Shanghai Informatization R&D Center, China Telecom Guangzhou Informatization R&D Center, China Telecom Cloud Computing Inner Mongolia Branch and China Telecom Cloud Computing Guizhou Branch are all merged into the new Tianyi Cloud, covering With all the capabilities of IaaS, PaaS, and SaaS, and gathering the resources of the entire group to build a professional cloud company, it is enough to show that China Telecom attaches great importance to Tianyi Cloud.
More importantly, in December 2021, China Telecom, China Electronics, China Electronics, China Chengtong, China Guoxin and other investors jointly signed the "Framework Agreement for Capital Increase and Share Expansion of Tianyi Cloud Technology Co., Ltd." One of the preparations before the cloud listing.
Ke Ruiwen said at the performance briefing meeting that the reform of equity diversification will help Tianyi Cloud integrate cloud computing ecological resources, strengthen independent control of key core technologies, deepen reforms and enhance corporate vitality, strengthen the core competitiveness of Tianyi Cloud in an all-round way, and enhance its digital capabilities. Market expansion capabilities in government, digital society, vertical industries and other fields.
What are the advantages of Tianyi Cloud?
In the first ten years of the development of China's cloud computing market, few people were optimistic about the operator cloud. Although Tianyi Cloud has remained in the first echelon, the development of Mobile Cloud and China Unicom Cloud makes people tend to believe that Tianyi Cloud is an example. Internet cloud services Providers and IT cloud service providers have seized more market volume.
As China's cloud computing market enters an adjustment period, the growth of top cloud service providers is weak. In contrast, Tianyi Cloud will make efforts in the second half of the year, and the growth of Mobile Cloud and China Unicom Cloud will also be considerable. Mobile Cloud's revenue in the first half of 2021 will be 9.721 billion Yuan, a year-on-year increase of 118.1%. Unicom Cloud’s revenue in 2021 will be 16.3 billion yuan, a year-on-year increase of 46.3%. The cloud collectives of the three major operators are gradually fulfilling the expectations of the cloud market.
At the performance briefing, some investors asked, what is the competitive advantage of Tianyi Cloud compared with the big Internet companies? Li Zhengmao, President and Chief Operating Officer of China Telecom, listed the following four points:
1. Hierarchical resources meet the needs of customers for cloud use. China Telecom has significant advantages in IDC resources, and the edge computer room provides a solid foundation for local cloud services. According to the cloud resource layout of "2+4+31+X+O", E-surfing Cloud has built a cloud network infrastructure of "centralization + regionalization + localization + marginalization + internationalization", which has a resource layout compared with peers Advantage.
2. Full-stack technology collaborative layout meets multi-cloud requirements. E-surfing Cloud can provide public, private, dedicated, hybrid, and edge full-form cloud services, and has formed a leading technical layout in the fields of distributed cloud, cloud terminal, cloud database, network security, etc., to meet the needs of customers in diversified cloud usage and emerging business scenarios .
3. Localized channels and services have obvious advantages. Tianyi Cloud has built a professional service team for the local market, providing exclusive customized cloud services for the whole process from consulting, planning, implementation, delivery to operation and maintenance.
4. Industry-leading security capabilities. In terms of security management, Tianyi Cloud has formulated a 5S (system, standard, confidentiality, persistence, and service) security system for enterprises to fully meet the requirements of trustworthiness and compliance.
To translate it in easy-to-understand terms, first of all, China Telecom's resource pool is large enough and deep enough. Under the scenario-based requirements of the cloud network edge, Tianyi Cloud has more resources to meet customer needs. Especially cloud-network integration, cloud computing has developed to a certain stage, and the requirements for the network are getting higher and higher. The trend of computing and network integration is obvious. As a communication operator, China Telecom has a strong point in the network, and Tianyi Cloud has natural advantages.
The second is technical reserves. It is generally believed that the technical capabilities of central enterprises are weaker than those of cloud service providers such as the Internet. In the view of Titanium Media App, Tianyi Cloud is also supplementing its technical capabilities through self-research and ecological cooperation, and the upgrade of the distributed cloud is a manifestation. It is worth mentioning that China Telecom's new IT system has achieved 100% cloudification, and 99% of the stock IT system has completed cloud transformation, all carried by Tianyi distributed cloud.
The third is the service capability. The service in the To B market is very important. Recently, many major manufacturers have strengthened the expansion of sales and regional service teams. Backed by China Telecom, Tianyi Cloud naturally has a service team that goes deep into all parts of the country, and the personnel The sinking depth far exceeds that of other cloud service providers.
Finally, it is self-controllable. China Telecom has served large-scale government and enterprises before informatization or even earlier. The trust bond has been established. The central enterprise’s identity endorsement has a natural bonus, and it is easier to win the favor of manufacturers with security demands.
It is worth mentioning that the grasp and embrace of policies by central enterprises is also a potential advantage. For example, in the recent fiery east and west, China Telecom mentioned in its financial report that the company has more than 700 data centers, and the scale of external service racks has reached 470,000, of which nearly 80% are deployed in Beijing-Tianjin-Hebei, the Yangtze River Delta, and Guangdong. The four key areas of Hong Kong-Macao Greater Bay Area and Chengdu-Chongqing form a resource layout of 2+4+31+X+O, which is highly consistent with the layout of the national integrated big data center.
Tianyi Cloud has encountered the trend of the cloud computing market head-on, but this does not mean that it can rest easy. Tianyi Cloud's innate endowment lies in resources and services. This advantage has been manifested and reflected in its performance. Next, Tianyi Cloud needs to consolidate its internal strength , to change the stereotype that operators' cloud technology capabilities are not strong.
In the relatively flat development stage of the cloud computing market, other cloud service providers are also making targeted reinforcements, strengthening resource coverage and service team building in Internet cloud services, Mobile Cloud and China Unicom Cloud have also seen the results of Tianyi Cloud, Huawei Cloud and other manufacturers Still going strong. When cloud computing develops to the next mature stage, the demand for resource-based cloud services may continue to weaken. Before that, Tianyi Cloud will have at least two to three years of rapid growth, and the current investment focus will determine the bottom line of Tianyi Cloud in the next stage. color. (The author of Titanium Media App for the first time in this article | Zhang Shuai, editor | Gai Hongda)
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