China-based tech behemoth Tencent is all set to step into the Indian cloud services market after it’s competitor Alibaba has recently made its strides in the industry.
While the move is to take effect a bit later, Tencent’s decision has surely sent some shockwaves in the cloud-services industry. The market leaders like Amazon’s AWS and Microsoft’s Azure may shrug off the new entrant, however, the other key players like Google’s GCP, IBM Cloud along with many other small providers may likely to be the most affected with its entry.
According to an estimate, the Indian cloud market is valued at $1.8 billion and is likely to increase by a factor of 2.3x to $4.1 billion by 2020. Big players like Amazon (AWS), Microsoft (Azure), Google (GCP), and IBM have all set up shop in the Indian market & have already gained a decent market share. These providers are also competing to gain traction among the startup circles. While it would be a challenging task for Tencent to make an impact in the already crowded industry, given the deep pockets and the big ambitions, it’s entry will certainly bring dynamics and make the cloud services more interesting, both on technical and pricing front.
Sources close to the development have confirmed that Tencent is likely to bring two offerings; LVB (Live Video Broadcasting) and VOD (Video on Demand). Given the fact that many on-demand video streaming sites host their servers using AWS, Tencent has to find the early adopters to grow on its platform or buy out the startups in the space to bring them to its platform.
Tencent cloud was officially released in 2013, and in short period of 4-5 years, gained some of the biggest players in China as it’s customers including the leading taxi hailing company Didi. Not to mention, WeChat, the popular communications app of Tencent is also running on Tencent’s cloud platform.