This post was originally published on Light Reading
With Tencent and China Mobile joining market leader Alibaba in slashing prices, the China cloud market looks set to enter a brutal price war.
Tencent, which has the third largest market share, has announced discounts of up to 40%, starting from June 1. China Mobile says it will cut retail prices by up to 60%, starting from today. It is only a matter of time before the second largest player, Huawei Cloud, and the other heavyweights, Baidu and China Telecom, introduce their own discounts.
Alibaba Cloud kicked it off last month with price cuts of 15% to 50% on core products, including a 40% cut in elastic compute service (ECS) for SMEs and a 50% reduction in storage charges.
Demand for cloud services in China is poised to bounce back after a year of sluggish growth.
(Source: Kiyoshi Takahase Segundo/Alamy Stock Photo)
Alibaba Group chairman and CEO Daniel Zhang, who also heads up the cloud business, said the industry was at “a technological watershed moment driven by generative AI and cloud computing.”
He went on to say Alibaba was “committed to making computing and AI services more accessible and inclusive for enterprises and developers.”
— Read the rest of this post, which was originally published on Light Reading.
