Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Industry

Cloud migration to drive growth for China's internet leaders: Fitch

July 27, 2020


Abstract : China's public cloud service market will see rapid growth in the next three to four years, driven by rising demand for cost-effective IT solutions and greater flexibility, scalability, reliability and security of cloud services compared with traditional IT infrastructure.

BEIJING, July 26 (Xinhua) -- China's public cloud service market will see rapid growth in the next three to four years, driven by rising demand for cost-effective IT solutions and greater flexibility, scalability, reliability and security of cloud services compared with traditional IT infrastructure, Fitch Ratings said in a latest report.

The cloud migration will also be helped by the need for employees to work remotely or in the office in the wake of COVID-19, and by China's "new infrastructure" economic stimulus this year, the report noted.

Competition in the public cloud service market will remain intense, but Chinese internet majors, including Baidu Inc., Alibaba Group and Tencent Holdings Limited, will continue to dominate the market due to their first-mover advantage, substantial financial resources, deep understanding and rich cloud use cases for a wide range of industries, according to the report.

The ratings agency expects the cloud business to be an increasingly important driver of the longer-term credit strength of the Chinese internet majors, as the rapid market growth will boost their business profiles and increase revenue diversity.

However, cloud services are unlikely to improve the companies' financial profiles in the short term as stiffer competition and higher capital expenditure for expansion will restrain cash generation from their cloud businesses until pricing discipline returns.

"Nevertheless, longer-term profitability and cash generation should be rewarding," the report added. Enditem

Scan the QR code and push it to your mobile phone

Keyword: big data cloud computing

Most Read

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial