The Chinese cloud management service industry is growing in the right place and the right time. A new report from IDC shows that the market is growing very quickly at an unprecedented rate.
New report reveals all
In its China Cloud Management Services Market Share report for 2018, IDC notes that overall Chinese cloud services market is growing at 131.4% year-on-year and is currently valued at $307 million. The country’s cloud operations management services sector is growing at an exponentially high pace and is worth $100 million alone. Other sectors like cloud value-added development, cloud migration and cloud consulting are also growing.
However, despite the progress, the market still appears to be in very nascent stages. The market remains much dispersed, and there is room for growth. The report shows that the top 8 cloud service providers in the country hold a total of 34.3% market share. These companies include the likes of CloudCare, Accenture, iSoftSTone, IBM, ICS&S, Dt Dream and Digital China.
Of these, Dt Dream is the largest service provider with a 6.5% share of the market. Digital China comes in at a close second with 5.8%, and ICS&S is third with 5.2% market share. According to Lihui Liu, a senior research manager with IDC working for the China Enterprise Research Department, the rate of growth of China’s IT services has been moderate, but the cloud has given them “a rare opportunity for development.”
A transformation in the market
Traditional IT service providers in the Chinese market are now transforming into the cloud business. The report suggests that the market share held by transformational businesses is more or less equal to emerging service providers and the leaders in cloud management service.
Therefore, there are chances that the market will not just grow but also reshape rapidly over the years. The report also suggests that competition in the market is also set to increase. Only those businesses that focus on business innovation and improve operational efficiency will be successful in this era.
The competition landscape will also remain intense for the years to come. Cloud-focuses businesses are paying attention to basic services like cost optimization. Apart from that, they are keeping an eye on deeper needs and pain points of the businesses they serve. Vertical industry solutions, maintenance, and intelligence operation will be some of the key highlights alongside automation in the solutions provided by these companies. Cloud management service providers will be highly capital-focused until 2021.