Cloud computing industry report: 2018, a turbulent year

The traditional IT industry chain mainly serves enterprises, while enterprises ultimately serve their customers. The main industry chain consists of six links: chips, hardware, basic software, application software, enterprises and users.

Most corporate customers lack bargaining power. The core hardware and core software of the supporting links have extremely high technical barriers, and the market concentration is extremely high. Monopoly manufacturers have already mastered the bargaining power, such as Intel, Oracle, Microsoft, VMware, etc.

After more than ten years of development, cloud computing has formed a relatively complete ecosystem and built a complete industrial chain from chips to end users.

The era of de-IOE in China is promoting the localization and cloudification of IT architecture. The Internet upgrade of enterprises has led to an increase in demand for cloud computing. With the frequent release of favorable policies, cloud computing is gradually becoming a national development strategy. The Ministry of Industry and Information Technology has proposed a plan for a 30% annual growth rate in the scale of the cloud computing industry during the 13th Five-Year Plan period.

The global cloud computing market has grown steadily overall.

According to Gartner data, the market size of typical public cloud services represented by IaaS, PaaS and SaaS reached US$52.24 billion in 2015, with a growth rate of 20.6%. It is expected to reach US$143.53 billion in 2020, with a compound annual growth rate of 22.4%.

The global market is dominated by SaaS. In 2015, the SaaS market size was US$31.649 billion, accounting for 60.6%, followed by IaaS and PaaS, accounting for 30.9% and 8.5% respectively.

As a "pioneer" in cloud computing, the United States occupies an absolute leading position in the global market.

In 2015, the US cloud computing market accounted for 56.5% of the global market share, with a growth rate of 19.4%; Europe, as an important part of the cloud computing market, with Western European countries represented by the United Kingdom, Germany and France accounting for 21% of the market share; Japan's cloud computing market accounted for 4.2% of the world's total; cloud computing emerging countries represented by China and India grew rapidly, with the Chinese market rising from 3.7% in 2012 to 5% in 2015.

The emergence of public cloud started with Amazon. Amazon’s e-commerce business was huge, and ordinary IT systems were difficult to support and expensive. Later, Amazon developed its own system to meet its own needs while renting out cloud services. Since then, the public cloud market has entered an era of rapid development.

According to a report from the China Academy of Information and Communications Technology, the scale of my country's public cloud service market reached 17.01 billion yuan in 2016, a year-on-year increase of 66%. It is expected that by 2020, the scale of China's public cloud service market will reach 60.36 billion yuan, with a compound growth rate of 37%.

According to the report of CAICT, the scale of my country's private cloud market reached RMB 42.7 billion in 2016 and will continue to grow steadily in the future. The private cloud market is dominated by hardware, accounting for 71.7%, so the market share is also led by enterprise hardware equipment providers. Compared with the IaaS layer of public cloud, the competition landscape is more fragmented, and the demand for software and services will increase in the future.

Government cloud is the largest and fastest growing part of private cloud. The construction market of government cloud infrastructure is coming to an end and will usher in "service-oriented reconstruction". Overall, the competition landscape of private cloud is fragmented, and there are more opportunities for software and service vendors in the future.

Server and storage hardware manufacturers, database, security and other software product manufacturers, and network equipment manufacturers will benefit greatly from the rapid development of cloud computing. Considering that Chinese companies do not have obvious advantages in the underlying basic software and hardware, operating systems and virtualization, and data centers are mainly built by Internet giants or co-built by telecommunications operators.

The biggest beneficiaries of cloud computing infrastructure for my country's listed companies are the second-tier servers. Hyper-convergence leads the era of data center 3.0 - cloud data center. The total market size is growing rapidly, and corporate customers prefer local manufacturers.

There are some positive signals in the financial data of both global and domestic cloud computing listed companies. The leading domestic companies have a five-year development gap compared with the world's leading cloud computing companies. The development status of the world's leading companies has strong guiding significance for domestic companies.

First, the cloud business revenue of the world's leading cloud computing companies has increased by a compound annual growth rate of about 50% in the past few years, and the stock prices of companies that transformed earlier have performed better. Secondly, the cloud business revenue of the leading domestic cloud computing companies has increased by a compound annual growth rate of more than 70% in the past few years, which has exceeded market expectations many times.

The cloud business performance of global cloud service providers has exceeded expectations for many consecutive years.

China's overall public cloud development lags behind the United States by five years and is still in the early stages of rapid development.

According to an IDC report, China is at least five years behind the United States in the public cloud market. When China's cloud services were first launched, the United States had already achieved a mature application stage from enterprise to the public. The market size of public cloud applications still has a certain gap compared to the United States and is still in the early stages of rapid development.