IDC Report: From IaaS and PaaS, Cloud Computing Being Dominated Roundly by Alibaba Cloud

2017-11-08 14:54 Posted by: Judy in , Go to Comment

Global advisory services provider International Data Corporation (IDC) on Nov. 7 released the results of marketing research regarding the Chinese platform-as-a-service, or PaaS, over the first half of the year. The results show that Alibaba Cloud, or Aliyun, had overwhelming advantages with 27 percent of market share, tripling second-placed provider. In IDC’s last China’s IaaS Public Cloud Market Report, Alibaba Cloud also led the IaaS segment in market share and growth.

In combination, the cloud computing company is dominating China’s cloud computing market in every aspect.

Infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and software-as-a-service (SaaS) are three main segments of cloud computing. As the foundation of cloud computing, IaaS model gives organizations the ability to rent IT infrastructure components, including compute, storage and networking over the internet from a public cloud provider. Meanwhile, PaaS model all developers to build applications and services over the internet.

IaaS is seen by many in the industry as reflecting cloud foundational capabilities of cloud computing vendors, while PaaS focuses more on revealing their maturity to resolve different levels problems raised from users and support more vertical industries. If we make a comparison between the China’s IaaS Public Cloud Market Report and PaaS Public Cloud Market Report for the first half of 2017, we can easily find that there is a huge gap between the two in terms of the top 5 cloud providers in China.

All the biggest IaaS cloud giants are local firms, including Alibaba Cloud, Tencent Cloud, and Ksyun, etc. But in the PaaS cloud market, 4 in 5 of the biggest cloud vendors are foreign companies, such as Oracle, AWS, Microsoft, and IBM, who account for a market share of 9.7, 9.7, 6.8, and 4.6 percent respectively. The only exception to this is Alibaba Cloud, who takes up 27 percent of market share and becomes the incontrovertible leader in China’s PaaS market.

Different from the large established IT giants like Oracle, IBM and Microsoft having invested heavily in PaaS branch, AWS and Alibaba Cloud are the first cloud computing firms that switch to PaaS business after accumulating huge amount of IaaS technologies. What makes Alibaba Cloud competitive with the foreign counterparts should be attributed to its consistent investment in the core technologies as well as its verification of three-dimensional integrated business scenario.

Take the PaaS layer database products as an example, Alibaba self-developed China’s first database product with independent intellectual property rights—OceanBase, breaking up monopoly of foreign companies. In addition to that, Alibaba Cloud took a lead in deploying HybridDB, HiTSDB, OpenSearch databases and tools to enter into a new ear, in which cloud providers access new PaaS standards based on IaaS prices.  

Such stories will continue repeating over and again. Last month, Alibaba has just the establishment of the DAMO Academy, promising to invest 10 million yuan in the development of new technology over the next three years. Another research institute PwC also says that Alibaba’s investment in technology development has totaled 2.5 billion dollars, leaving other Chinese companies very much behind it.  

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