# Alibaba cloud and its "enemies" By [Carol](https://paragraph.com/@carol-14) · 2022-05-23 --- A fact that is happening on the cloud battlefield is that the undercurrent of the government enterprise market is surging, and the Internet market is fierce. Mention what to do next? A key word repeatedly mentioned by many cloud manufacturers is: ecology. The sales model of cloud manufacturers is changing from traditional resellers selling products to independent software developers serving to attract more customers to the cloud. Author / author of Caijing Tianxia weekly Xue Yongwei Your video conference is not so stuck, explosive news is difficult to make the server crash, and hundreds of millions of people will not go down together. There is the most direct reason behind this - the cloud computing technology has become more mature in the past two years. Only with the technical support of cloud manufacturers, enterprises can freely use computing power like water and electricity, and carry out large-scale data storage and data computing, can the era of cloud really come. According to the forecast data of IDC, a market research company, in just 15 years, the overall market scale of global cloud computing has increased from zero to US $705 billion in 2021. This is an amazing data, but this is only the first scene of the cloud computing market. It is predicted that by 2025, the overall global cloud computing market will exceed US $1.3 trillion, and the cloud computing market will open the second act of innovative development. The huge market space makes it impossible for Internet giants with peak growth in consumer Internet fields such as e-commerce and entertainment to ignore. Cloud business, without exception, undertakes the new growth curve of Alibaba, Tencent, Baidu and Huawei. But behind these beautiful visions, the real competition has been extremely cruel. The input cost remained high, and the growth rate of income began to decline significantly. In the most critical government and enterprise market, several big companies are in deep water. As the cloud market enters a new cycle, major manufacturers have reached a new consensus. It is no longer necessary to burn money. In the face of real income problems, they are bound to come up with feasible solutions. The hard battle is coming. From strategy to personnel organization, it is inevitable to face a new round of shock. Executive shock At the end of the first quarter, the executives in the cloud business sector of several major domestic factories changed very frequently. In March, Cai Yinghua, who once served as president of China’s government and enterprise business, parachuted to Alibaba as senior vice president and served as president of global sales of Alibaba cloud, with a level as high as M7. Ren Geng (M6), President of Alibaba cloud China, is also a former Huawei employee. But after that, rumors of Ren Geng’s resignation began to flow around. An employee of Alibaba cloud told Caijing Tianxia weekly that there was news in the industry that Ren Geng might join Baidu cloud. On the evening of May 11, according to leifeng.com, citing various sources, Ren Geng communicated with members of Ali’s general office during his leave after resignation, and finally decided to stay in Ali. As for the specific position, it is not known for the time being. During this period, on May 5, the news that Shen Shuan officially led Baidu cloud spread everywhere. Although insiders say that this is just a normal job rotation, it is also very obvious that Shen Shuan, who once led the business adjustment of MEG (Baidu mobile ecological business group), is taking over - as the fourth cloud, baidu cloud is also ready to do a big job this year. In the internal letter released by Robin Lee, he placed high hopes on the future of Baidu cloud: “Shen Shuan will be responsible for leading the ACG (Baidu AI Cloud business group) team to accelerate the implementation of the cloud intelligence integration strategy, achieve quantitative to qualitative changes in scale and health, and make new contributions to the development of Baidu’s second curve.” In the past 2021, the management of Huawei cloud has also experienced four adjustments to strengthen the attack and grab. At Huawei’s 2021 performance conference, Huawei cloud also became a new star in the platform with dense executives. Meng Wanzhou, who made his debut after returning home, shared the beautiful revenue data of Huawei cloud. Huawei cloud insider Huang Qi (a pseudonym) observed that “Huawei has only started to build the cloud since 2017. In just a few years, it has changed from ‘others’ to the number two in China. Alibaba cloud is in a hurry to dig people in the past, which can be seen as urgent”. The change behind the scenes is that Alibaba cloud lost many orders in 2021, and tiktok, a major customer in the global market, moved out of Alibaba cloud. In December of that year, Alibaba cloud was also announced by the Ministry of industry and information technology to suspend the qualification of cooperative units for six months. Under various circumstances, Alibaba cloud’s market share fell rapidly. In the fourth quarter of 2021, Alibaba cloud experienced a stall trend for the first time after several quarters of high growth. Its business revenue was 19.539 billion yuan, a year-on-year increase of 20%, the lowest in history. According to canalys data, Alibaba cloud’s domestic cloud computing market share has changed from 46.4% in the fourth quarter of 2020 to 37% in 2021. The market share of Huawei cloud has reached 18%, with an annual growth of 67%. Followed by Tencent cloud and Baidu cloud, although the market accounts for only 16%. One is only 9%, but the growth rate is more than 50%. Although the market share fluctuates, the growth rate of cloud manufacturers generally slows down in 2022. It is publicly reported that the performance data of a number of domestic and foreign cloud manufacturers in 2021 show that the high growth stage of 50% - 60% of domestic cloud manufacturers has ended, and the growth rate of 20% - 30% is the current general growth rate. In addition to Amazon’s AWS revenue growth of nearly 40%, the revenue growth of mature digital enterprises such as Microsoft cloud, salesforce and Accenture remained between 20% - 30% in 2021. The growth rate of old IT enterprises such as SAP and Oracle is 10%. Without exception, enterprises have formed a new consensus, and cloud business has to carry the banner of making money and enter the stage of high-quality development. In 2021, the revenue of Alibaba cloud, Huawei cloud and Baidu AI Cloud will be 72.4 billion yuan, 20.1 billion yuan and 15.1 billion yuan respectively, which is still a big gap compared with the main business revenue of their respective companies. In the past, the cloud market paid special attention to the effect of scale. Only the larger the scale, can we dilute the cost and obtain higher profits. At this point, overseas cloud manufacturers have found a feasible way. “Amazon cloud service (AWS) has made a demonstration.” Hu Jianfeng, chairman of Aoyuan electronics, told Caijing world weekly. In the first quarter of 2022, the net profit of Amazon cloud business increased by nearly 57% year-on-year to US $6.52 billion, filling the first place of Amazon --- *Originally published on [Carol](https://paragraph.com/@carol-14/alibaba-cloud-and-its-enemies)*