Tianjing, a city near China’s capital Beijing, has become the latest site where China’s government cloud services are gradually taking over its public-cloud counterparts.
On August 27, the Tianjing branch of State-owned Assets Supervision and Administration Commission of the State Council (SASAC), a commission that supervises the country’s State-Owned Enterprises (SOEs), demanded the city’s SOEs to completely migrate to state-owned cloud services before September 30, 2022, moving away from China’s major public cloud service providers, including Alibaba Cloud and Huawei Cloud. Moreover, the city’s SASAC has forbidden SOEs to continue or sign new leases with third-party public cloud service providers.
Despite some observers downplaying the long-term impacts of these newly-emerged state-owned clouds, their emergence points to a trend contrary to the developments in the United States, where governments rely on cloud services provided by big players such as Amazon Web Services (AWS) or Microsoft Azure.
It remains to be seen the development trajectory of these government cloud services. According to the market intelligence firm IDC, as of Q1 2021, the top five cloud service providers in China accounted for 77% of the market. The largest was Alibaba Cloud, taking up 40% of the market. Tencent and Huawei, both ranked 2nd, respectively took up 11% of the market. AWS, the only foreign provider making into the top five list, had a market share of 7%.
Other provincial SASAC branches, notably those in Zhejiang and Sichuan, have also introduced their respective state-owned clouds.