Technology cloud report original.
Big data, cloud computing, and artificial intelligence have formed a vast trillion-level technology market. These three fields, no matter how far or near they are viewed, are so sexy and charming that generations of entrepreneurs have been fighting for them.
However, the winners and losers are often known in an instant in the battles of masters. As soon as the giant curtain of the cloud computing market is opened, all parties have already wrestled with each other and attacked heavily.
In 2022, not only will the overall growth rate of the cloud computing industry enter a bottleneck period, but the revenue growth rate of leading manufacturers in the United States and China will be lower than that of challenging manufacturers, and the gap in their share is being narrowed by latecomers. This may be to some extent It marks that the first half of cloud computing is coming to an end, and the competition is heating up.
When cloud computing comes to the second half, the measure of body position may no longer be horizontal speed, but vertical depth.
The price war in the public cloud market is inevitable
International analysis firm Canalys analyzed that China's cloud computing market is composed of Alibaba Cloud, Huawei Cloud, Tencent Cloud and Baidu Smart Cloud. The "China's Four Clouds" account for 80% of China's cloud computing market and occupy a dominant position. With the gradual advancement of cloud-network integration and cloud-edge collaboration, the breadth and depth of cloud computing applications will continue to expand, and will play an important role in promoting changes in the quality, efficiency, and power of economic development.
But judging from this year's trends, although the overall cloud computing market is expanding, the growth rate is not as good as in previous years. The competition among cloud vendors is more intense, and their own "territory awareness" is stronger.
With the slowdown of cloud computing growth, the valuation logic of the industry has changed. Cloud computing manufacturers are doing their best to defend their own territory and try to grab more shares in the stock market in order to seek greater living space.
For this reason, this year's domestic cloud computing market has set off a more brutal price war, which will once again increase the competitiveness of domestic public clouds.
At the Alibaba Cloud 2023 Partner Conference, Alibaba CEO Zhang Yong announced that the prices of its core products will drop by 15% to 50% across the board; Mobile Cloud also announced that the entire line of products will drop by up to 60%, directly introducing the "price war" White-hot stage.
There is no doubt that this is a cruel test for cloud service providers. In the stage of highly involuted public cloud, exchanging price for market is undoubtedly an effective means of competition, but how long this effect can last is thought-provoking.
In fact, the decline in this wave of cloud services has been huge, involving many manufacturers, and covering a wide range of product lines has reached an unprecedented level, and even triggered the speculation of "price for volume".
This idea can also be seen from the development status of the cloud computing market. According to the data forecast by the China Academy of Information and Communications Technology, the growth rate of the global cloud computing market will rebound. By 2025, the market size will exceed 600 billion US dollars, and the five-year compound growth rate will reach 23.56%.
my country's cloud computing market will continue to maintain a rapid development trend. It is estimated that the market size will exceed 1 trillion yuan in 2025, and the compound growth rate from 2022 to 2027 will exceed 36%. Faced with such a large blue ocean market, cloud vendors' desire for self-development can be imagined.
Today, the domestic cloud market is facing fierce competition, and "price reduction" has become a good strategy. According to IDC data, the two major businesses in China's public cloud market - infrastructure as a service (IaaS) and platform as a service (PaaS) - will grow by 19.0% year-on-year in the second half of 2022, compared with the growth rate of 42.9% in the same period of 2021. There has been a significant decline.
As the Matthew effect in the cloud computing market continues to intensify, the domestic market is dominated by Alibaba Cloud, Huawei Cloud, and Tencent Cloud. Their leading advantages leave many challengers behind, and it will be difficult for small and medium-sized enterprises to run on the public cloud track.
At present, my country's traditional enterprises are still in the stage of digital transformation, and the information construction is not perfect. However, due to the limitation of the industrial structure, it is difficult for domestic cloud manufacturers to copy the model of foreign cloud giants. This requires cloud computing manufacturers to quickly get rid of a single price war , turn to a higher level of brand and service competition, and increase the brand premium through differentiation strategies, so that cloud computing will usher in greater development.
Private cloud demand continues to release a small and beautiful niche market
Entering the second half, major government and enterprise customers in the cloud market have become a new growth point. According to the forecast of the Cloud Computing Open Source Industry Alliance, the scale of my country's government cloud market will reach 120.39 billion yuan in 2023, with huge potential. When major government and enterprise customers become a new match point, for cloud computing manufacturers, whoever can dig this gold mine means that whoever is more likely to rewrite the competitive landscape of cloud computing in the second half.
Since Amazon first opened up the cloud computing market in 2006, public cloud has been the mainstream of the market. Internet cloud service providers such as Alibaba Cloud and Tencent Cloud have dug the first pot of gold from it.
However, as the impact of the COVID-19 epidemic on private cloud deployment continues to decrease, and the demand for traditional enterprises to migrate to the cloud continues to release, the offline deployment of private cloud stock projects and incremental projects has begun to pick up.
At the same time, the digital transformation of state-owned assets and state-owned enterprises has accelerated, and the construction of exclusive state-owned assets cloud has accelerated, bringing new growth space for the development of private clouds.
According to Gartner's estimates, from 2015 to 2022, the global government and enterprise cloud computing market penetration rate will increase year by year, from 4.3% to 15.3%. Driven by policies, China's government affairs cloud has achieved high growth in recent years, and the government affairs cloud accounted for about 29%.
Today, driven by the continuous digital transformation of the industry, the private cloud system platform has become a core component for governments and enterprises to build a cloud environment.
With the gradual deepening of government and enterprise "going to the cloud and using the cloud" and digital transformation, the traditional IT infrastructure such as hardware + virtualization + cloud management adopted by the government and large group enterprises cannot meet the needs of flexible computing resources and data interconnection, and is accelerating. Build an IT system based on a new generation of private cloud.
From the current stage, governments at all levels are actively promoting the construction of digital government and smart cities. Driven by multiple policies, the level of digital government construction has continued to improve, and the construction of smart cities has fully penetrated. Government cloud is an important part of building digital government and smart cities. , integrated with new digital technologies and applications, its construction and development have a broad space for development.
In addition, the prevention and control of the epidemic has put forward new requirements for the construction of a digital government, and the government has also realized the importance and urgency of "using numbers on the cloud", prompting the government to build a larger private cloud platform.
However, financial services are highly dependent on the support of safe, reliable and stable digital technology. Informatization in the financial field started early and has a high level of development. Its business innovation and development requires a digital and intelligent cloud platform, online payment, supply chain finance, financial technology, etc. Accelerate the innovation of new models and new forms of business in the financial field. Such innovative financial business applications require agile, efficient, flexible and controllable IT infrastructure, which requires IT reform to follow the trend and accelerate migration to the cloud, using a new generation of private cloud to carry applications and systems.
In addition to the government and finance, telecommunications, transportation, manufacturing, energy, healthcare, education, etc. have also become the mainstays of China's application private cloud in order to comply with the trend of IT transformation and better empower business digital transformation, and ensure the safe and efficient operation of business systems. major industries.
The current private cloud market has formed a competitive landscape with data center, cloud service, professional private cloud and other manufacturers as the main participants, and manufacturers with full-stack software and hardware technology capabilities have become the main representatives of the private cloud market.
In the leader quadrant, Huawei and H3C have a relatively complete cloud computing industry chain, can provide the hardware and software infrastructure needed to build a private cloud, and have a broad customer base in the enterprise data center market; Tianyi Cloud insists on cloud-network integration, With the differentiated advantages of Pratt & Whitney, we provide government and enterprise customers with multi-faceted private cloud construction and local cloud services.
In addition, Alibaba Cloud, Tencent Cloud, and JD Cloud are also focusing on the private cloud market, helping enterprises build cloud services consistent with public clouds in their own data centers.
The new generation of private cloud accelerates the replacement and upgrade of traditional private cloud
The digital transformation of enterprises and the way enterprises use cloud computing are being upgraded along with the evolution of a new generation of private cloud technology, which is accelerating the replacement of traditional private clouds.
First of all, the new generation of private cloud generally adopts the "one cloud multi-core" architecture, which can be seamlessly compatible and adapted to basic software and hardware facilities based on different technical architecture routes such as X86, ARM, RISC-V, MIPS, Alpha, etc., so as to achieve downward shielding The difference of different underlying infrastructures and the provision of consistent and high-standard cloud services upward.
Secondly, under the trend of hybrid multi-cloud and distributed cloud deployment, it is urgent to consider the design of a new generation of private cloud in a multi-cloud environment from the overall perspective of cloud computing, so that private cloud deployment and cloud public deployment have a consistent experience.
Finally, in the era of digital economy, computing needs are ubiquitous, computing power deployment is required everywhere, and computing resources are also beginning to extend from the center to the local and edge. The new generation of private cloud will expand from centralization to marginalization.
According to CCID Consulting's authoritative "2022 China Private Cloud Market Research Report", China's private cloud market will maintain rapid growth in the next three years, with a growth rate of more than 30%. It is estimated that by 2024, China's private cloud market will reach 276.82 billion Yuan.
Similarly, China's private cloud system platform will also maintain rapid growth, and the market size is expected to reach 17.63 billion yuan by 2024.
With the continuous deepening of digital transformation and the continuous integration of cloud computing technology with the business of governments and large enterprises, users are fully realizing the value of private cloud, and the private cloud market is ushering in a golden stage of development.
In order to comply with the trend of IT transformation and better enable the digital transformation of business, "going to the cloud and using the cloud" has become a necessary measure for the digital transformation of government, finance, telecommunications, transportation, manufacturing, energy, healthcare, education, etc. From focusing on "going to the cloud for government and enterprises" to "empowering with the cloud", government and enterprises urgently need to coordinate the construction of a new type of information system based on the cloud. A safe, reliable, efficient and stable private cloud will play an irreplaceable role and can provide government Provide more powerful support for enterprises to "go to the cloud and use the cloud".
[About Science and Technology Cloud Report]
Focus on original enterprise-level content experts - technology cloud reports. Founded in 2015, it is the top 10 media in the cutting-edge enterprise IT field. Recognized by the Ministry of Industry and Information Technology, Trusted Cloud, one of the official media designated by the Global Cloud Computing Conference. In-depth original reports on cloud computing, big data, artificial intelligence, blockchain and other fields.