Chen Yongwei/Wen
At the end of July, Google announced that after more than three months of investigation, the U.S. Department of Justice had approved its acquisition of cybersecurity company Mandiant. If it goes well, the acquisition will be fully completed by the end of the year, when Mandiant will be included in the security portfolio of Google's cloud business.
The acquisition of Mandiant is reportedly $5.4 billion, the second-largest acquisition in Google's history, after its $12.5 billion acquisition of Motorola's mobile phone division in 2011. But Mandiant is not the "good company" that people usually think of, in fact, it has been in a state of loss in recent years. So why would Google spend so much money to buy such a non-profitable company? The answer is that it will make up for its shortcomings in the cloud service business through this acquisition and win a greater initiative for the development of this market.
If we are familiar with Google's history, we know that it had a lot of ambitions in the cloud services business a long time ago. Back in 2017, Diane Greene, then head of cloud business, said he was about overtaking THE CLOUD, the cloud leader, by July 31, 2022. Although Google's dream didn't come true, it's undeniable that Google's cloud business did experience explosive growth over the years. In 2017, the overall revenue of Google's cloud business was only $4.06 billion, accounting for only 3.7% of the company's total revenue. By 2021, its cloud business revenue has reached $17.6 billion, and its share of the company's total revenue has risen to 6.8%. It failed to catch up with AWS, not because it didn't progress fast enough, but because AWS also made tremendous progress in the same period.
If we look at the competitive landscape in the field of global digital economy in recent years, we will find that both Chinese and foreign, Internet giants have invested huge forces in cloud business. Why are the giants so interested in this market? What are the characteristics of this market compared to other markets? What competitive strategies have been adopted by companies participating in this market? What will the future hold for this market? And let's talk about them all.
Cloud markets and their competitive characteristics
Before introducing the competitors in the cloud market, we first need to give a general introduction to the characteristics of this market, as well as its overall competitive landscape.
The so-called cloud, or cloud computing, is popularly speaking, the onlineization of IT resources. The provider of such online IT resources can be either the user himself or a third-party supplier, so the cloud can be divided into private and public clouds by the corresponding region. What we now commonly call the cloud market mainly includes public clouds, that is, cloud services that provide IT resources from third-party vendors, and private clouds managed by third parties.
Depending on the delivery model, cloud services can be divided into three categories: IaaS, PaaS, and SaaS. The so-called IaaS refers to "infrastructure-as-a-service", in this delivery model, the provider of cloud services provides mainly storage, hardware, servers and network infrastructure; PaaS refers to "Platform-as-a-Ser-vice", a delivery model in which cloud service providers supply customers with more resources to provide users with a "ready-to-use" computing platform that meets their needs for design, development, testing, and deployment of applications; The so-called SaaS refers to "Soft-ware-as-a-Service", in this delivery model, the cloud service provider will be the finished software as a product to provide to users for their use.
Albert Bar-ron, a software architect at IBM, once made an analogy about these three delivery models: If a cloud-based user is likened to a pizzeria owner, he can choose whether to make his own pizza from start to finish or outsource some of the work in order to sell pizza. If you adopt IaaS, it is as if the pizzeria uses someone else's kitchen, stove and gas and uses these to produce its own pizza; If you use PaaS, you will not only rent a kitchen, stove and gas, but also let people make dough cakes, just add the filling, bake and bake it and sell it; If You use SaaS, it's like buying a finished pizza from someone else and selling it directly.
From the perspective of cloud service providers, the business logic and sales strategies of these three delivery models are very different. For IaaS, since the main body of the service is the rental of equipment, and the equipment is essentially homogeneous - just like the kitchen and kitchenware that a pizzeria rents will not be fundamentally different, and the experience of which IaaS product the user uses will not be too different - in this case, the key to the competition in the IaaS market is cost. Therefore, the competitive strategy adopted by IaaS service providers is mainly the so-called "cost leadership" strategy, such as reducing equipment costs by developing their own hardware. In contrast, PaaS and SaaS have a high degree of differentiation and often need to be specially designed according to the needs of users, so these two delivery models have higher requirements for the ecological capabilities and services of service providers.
Obviously, the above differences also determine the difference in profit margins between the three delivery models. The low differentiation of IaaS services determines that they are relatively competitive. Under competition, IaaS services are generally less profitable. From the perspective of the market level, its profit margin is between about 10%-15%. In contrast, PaaS and SaaS services are much more profitable, with average profit margins of even reaching around 70%. Therefore, PaaS and SaaS have been regarded by major cloud service providers as the main battleground for profits. That's not to say the IaaS market doesn't matter, though.
IaaS usually becomes an important drainage portal - once a user chooses a service provider's servers and data centers, for compatibility and convenience reasons, he is more likely to choose additional services such as AI and security provided by the company. That said, while IaaS itself may not be profitable, it can provide opportunities for future earnings. Therefore, although many service providers do not rely on IaaS to make money, they will still retain the IaaS business, and even the scale of the retained business may be quite considerable.
As an infrastructure, IT resources have a strong economy of scale, and the larger the scale, the lower the average cost. If each individual or business directly owns the IT resources they use, the cost of acquisition and installation will be enormous. Moreover, in most cases, the IT resources deployed by individuals are not fully utilized, and the waste generated is also very considerable. - On these two points, you can imagine that the computers and software we buy, we may buy a computer may cost thousands or even tens of thousands of dollars, but the time to use it every day may only be a few hours. If these resources are deployed in the cloud in combination and allow users to use them on demand, not only can their acquisition and deployment costs be effectively reduced, but also the utilization of these resources can be effectively improved. Combined, using cloud resources provided by third parties can save a lot of money compared to using local IT resources. It is for this reason that in recent years, cloud services are becoming more and more popular with users, especially those who are very cost-sensitive. Coupled with the fact that the epidemic has ravaged the world in recent years, forcing a large number of enterprises to digitize, the size of the cloud computing market has achieved explosive growth.
According to Gartner, in 2017, the global cloud market size was only $146.7 billion, of which the market size of IaaS was $30.7 billion, PaaS was $19.9 billion, and SaaS was $96.1 billion. By 2021, the overall size of the cloud computing market has rapidly swelled to $330.7 billion, and the size of the IaaS, PaaS and SaaS markets is $91.6 billion, $86.9 billion and $152.2 billion, respectively. The rapid development of the cloud market is evident from this.
In China, with the deepening of digitalization, the cloud market has also experienced rapid growth. According to the China Academy of Information and Communications Technology, the size of China's public cloud market was 26.5 billion yuan in 2017, and by 2021, its size has reached 218.1 billion yuan, which is higher than the global market. However, compared with the global market, China's cloud market has a very distinct personality in terms of structure. Overall, in China's cloud computing market, the proportion of IaaS is higher. In 2017, IaaS accounted for 56.1% of the overall Chinese public cloud market, 4.4% of PaaS and 39.5% of SaaS; By 2021, the share of IaaS has risen to 74%, the share of PaaS has risen to 9%, and the share of SaaS has been compressed to 17%.
This trend actually reflects to a large extent the current situation that the development of cloud computing in the mainland is still relatively backward. As mentioned earlier, compared with IaaS, PaaS and SaaS are more non-standard, requiring more specialized design and corresponding services, and the current ability of cloud services in mainland China to provide personalized services is relatively weak. Taking SaaS services for large enterprises as an example, there are many large-scale enterprises in the mainland that have demand for enterprise-level software, and the potential demand for related SaaS services is still very considerable, but in the market, suppliers who can provide related services are very scarce. Even if it can be provided, its services are relatively simple, and it is difficult to meet the requirements of large enterprises for data governance and security in terms of functionality and security. It is in this context that the continent's SaaS and PaaS markets will have a low share and slow development. In addition, in recent years, the wave of enterprise digitalization has promoted the great development of relatively standardized IaaS services, so under the two phases, there has been a phenomenon that the proportion of IaaS that is different from the international market has not decreased but has risen.
Competitors in the global cloud market
In the global cloud market, Amazon, Microsoft, Alibaba and Google have been the market leaders. Especially in the relatively standardized IaaS market, the share of the four companies can reach about three-quarters of the total size of the entire market. Among them, Amazon's AWS cloud, Microsoft's Azure cloud, and Alibaba Cloud were once called the "3A" in the cloud market. However, in recent years, Alibaba Cloud's growth rate in the global market has slowed down, while Google Cloud has risen strongly, so in the statistics of some institutions, Google has replaced Alibaba as the third oldest in the international cloud market. Since Alibaba Cloud is operated by Chinese companies and its most important market is also in China, we will put an introduction to it in the latter section, and only introduce the status of the other three enterprises here.
Amazon's AWS Cloud
In the cloud computing market, Amazon is a well-deserved pioneer. As early as 2006, Amazon launched its own cloud service, which became AWS (Note: The full name of AWS is AmazonWebSer-vice, that is, Amazon Web Services). Amazon's move not only created a new business area for itself, but also created a new market for cloud services. Because it will not be until a few years later, its later opponents, such as Ali, Microsoft, etc., to start a similar business.
Generally speaking, to become a cloud service provider, you first need to make a large investment in fixed assets, which requires huge costs. For most enterprises, this huge cost will become the main threshold for them to enter the cloud market. For Amazon, though, that threshold didn't exist in the first place. Moreover, the development of the cloud business itself solves a huge cost problem for it. This is because, as an e-commerce giant, Amazon has purchased and deployed a large number of IT resources in order to maintain its own platform operations, but these resources will only reach full capacity in a few days a year. This is undoubtedly a huge waste for Amazon. Therefore, when Amazon first proposed the concept of cloud services, the main purpose was to reduce costs, not profits. But inadvertently, the business was popular as soon as it was launched — thanks in large part to the fact that Amazon has cultivated a huge number of enterprise users in the e-commerce market, which need to use a lot of IT resources in their operations, so they naturally become seed users of Amazon's cloud business.
Because Amazon created AWS with the original intention of leveraging restricted resources, its initial cloud business development was dominated by IaaS. Stemming from its first-mover advantage, and the economies of scale and networks that followed, Amazon maintained its advantage in IaaS from the beginning to the present. However, as we said earlier, the IaaS business is actually only making hard money, and its profit margin is very limited, so in the subsequent development, Amazon has been paying attention to strengthening its advantages in PaaS and SaaS.
Unlike IaaS, the strengths of PaaS and SaaS are mainly in terms of computing power, security, and software. To this end, Amazon has worked primarily in two ways:
On the one hand, Amazon attaches great importance to self-research and development. Of all the tech companies in the U.S., Amazon has consistently spent the most on research and development. In 2021, its total R& D expenditure reached a staggering 56 billion US dollars, which is equivalent to 1.55 times that of Google, 2.43 times of Apple, 2.52 times of Microsoft, or the sum of the R&D expenditure of 10 Chinese companies such as Huawei, Ali, Tencent, Baidu, ZTE, Meituan, JD.com, Kuaishou, NetEase and Xiaomi. A significant portion of this huge R&D expenditure is spent in AWS-related areas. AWS's powerful computing power, as well as artificial intelligence capabilities, are largely achieved under this huge investment.
On the other hand, in order to maintain THE advantage of AWS in PaaS and SaaS, Amazon has also done some "not to talk about martial arts". At AWS, there's a daily job called strip-mining software. Specifically, when Amazon discovers which software is more popular, it asks its developers to work with it to bundle the software to its own cloud services. Generally, these open chambers agree to the offer, thus becoming vassals of Amazon. In case any developer is reluctant to cooperate, Amazon blocks the software in the cloud and develops similarly functioning software to bundle on cloud services. Not only that, but Amazon sometimes even poaches engineers from companies that refuse to cooperate. Through these means, Amazon has been able to integrate a large number of applications on its own cloud services, and these rich applications have become the key to Amazon's long-term leadership in the PaaS and SaaS markets.
Recently, antitrust has been booming around the world. Under regulatory pressure, Amazon has had to restrain itself from this blatant crackdown on competitors and instead rely on higher-density research and development to consolidate its advantage. The moat constructed by this alone may be difficult for its competitors to surpass for a long time to come. From this point of view, although the market share of Amazon AWS Cloud in the entire cloud computing market will be reduced in the future period of time, on the whole, its first position is still relatively difficult to shake.
Microsoft's Azure Cloud
As the world's second-largest cloud service provider, Microsoft entered this market with a very different intention than Amazon. Microsoft started with software. From the 1990s to the beginning of this century, Microsoft has been dominating the Internet world with two products, Win-dows and Office. Steve Ballmer, CEO at the time, also firmly believed that with these two pillar products, Microsoft could enjoy peace. So, although RayOzzie, then Microsoft's chief software architect, came up with the idea of cloud computing as early as 2005, suggesting a disruptive platform that would recreate Microsoft's Windows operating system based on the Internet. Designs such as .NET Application Services and Microsoft's Office Suite have been hugely successful — in fact, this is the SaaS that people later became familiar with. However, in the case of stable and sufficient income on the PC side, this suggestion that seemed to be laborious and financially expensive at the time was not taken seriously.
It wasn't until 2008 that Oates persuaded Ballmer to accept this avant-garde proposal and begin building azure clouds. More than a year later, in February 2010, Windows Azure was fully launched. However, at this time, the Internet has entered the era of mobile Internet from the PC era. With the rise of up-and-coming stars such as Google, Microsoft, a giant in the PC era, has a great tendency to shrink, and it is not easy to maintain its advantage in the core market, of course, there is no ability to develop the new business of the cloud.
That didn't change until 2014, when Satya Nadella took over as CEO. Completely different from Ballmer, who stuck to the old business of the PC era, Nadella firmly believed that the main way of software distribution in the future must not be through optical discs but the Internet, so since he took office, he put forward the slogan of "cloud first", while drastically cutting the traditional business, and even merging the core business Windows into a business unit, while fully supporting the cloud business, requiring its business personnel to give priority to introducing Azure cloud when promoting the company's products.
In the beginning, Azure was very rudimentary, with only a few functions such as computing, storage, and SQL database, and from the perspective of positioning, it mainly belonged to the category of IaaS. From a functional point of view, this is no advantage in the market. At that time, Amazon's AWS had developed AmazonEC2, which allowed customers to remotely access EC2 instances through their own desktops and freely install the software they intended to use. In addition, the release of AmazonElasticBlockStore (EBS) helps more users easily run various types of traditional Windows software in EC2 cloud instances. At the same time, Google Cloud has launched the first PaaS service. The overall competitive landscape is quite unfavorable to Microsoft.
In this context, Microsoft quickly adjusted the original development ideas, the original "Windows" in Windows Azure went directly, changed to azure cloud, and at the same time opened up support for Linux systems, and actively cooperated with Red Hat, Oracle, SUSE and Canonical to promote Azure to become an ideal Linux operating environment. Through these reforms, Azure has finally gained a foothold in the IaaS market.
After basically establishing its market position, Microsoft began to actively exert efforts in the fields of big data analysis and artificial intelligence, and strived to achieve differentiation of cloud products. For example, it developed AzureHDInsight through a partnership with Hortonworks, which provides the foundation for running open source analytics services such as Hadoop, Spark, Kafka, and more. For example, it also introduced Azure, which has a super popular R language in the field of data analysis, through the acquisition of Revolution Analytics. After the rise of artificial intelligence, Microsoft seized the opportunity to deploy AzureMLStudio, a tool that can provide users with machine learning services, on Azure. The implantation of these functions has allowed Microsoft to gradually achieve advantages in the IaaS and PaaS markets. Coupled with Microsoft's own strong software research and development capabilities, its Office365, Dynamics and LinkedIn are also widely praised in the SaaS market. Under the comprehensive, Microsoft's Azure cloud has killed a bloody road under the siege of strong enemies and sat firmly in the second position of the cloud market.
Google Cloud
Compared to Amazon's AWS cloud and Microsoft's Azure cloud, Google Cloud seems to have a much lower presence. But in fact, when it comes to the concept of "cloud computing", Google is more qualified than Amazon and Microsoft to compete for the right to invent. As early as when Google's founders Page and Brin were still studying at Stanford, they proposed and implemented a new file system called "BigFile". This technology is the prototype of the GFS file system, which is very important in Google's cloud computing technology. In 2006, Google was also the first to disclose the concept of cloud computing at its search engine conference, and said that it was developing related products. Unfortunately, shortly after Google unveiled the concept, Amazon went straight to the finished product of cloud computing. It wasn't until 2008 that Google launched its cloud product, Google AppEngine, more than a year later than Amazon. It is more than a year that Amazon has accumulated enough first-mover advantages.
Coincidentally, during this period of time, Google's core business such as search advertising has developed rapidly, which makes Google feel that there is not much need to chase the hard bone of the cloud. Therefore, during this period, Google's cloud business has developed very slowly. It wasn't until 2015, when Amazon announced that AWS's total revenue in the previous fiscal year had reached $4.6 billion, that Google woke up and regretted that it had missed a treasure market. After realizing this, Google quickly recruited its co-founder Diane Green from the cloud computing company VMware with a high salary, so there was the statement that Green wanted to catch up with AWS mentioned at the beginning of this article. Green's strategy is to actively leverage Google's strengths in artificial intelligence and integrate them into the cloud to enhance competitive advantage. However, as we said, Green did not do this and left Google in 2018.
To fill Green's place, Google poached Thomas Kuri-an from Oracle. As soon as Curian took office, he visited hundreds of customers around the world. During his visit, he found that many cloud computing users face a common problem, that is, in general, a user can only use one cloud, and it is very difficult to collaborate across clouds. However, each cloud has its own advantages and disadvantages, forcing customers to make choices. In response to this customer pain point, Curian decisively proposed a "multi-cloud" development strategy. Google Cloud is required to improve its own openness and compatibility with other cloud products. As soon as this trick came out, it attracted many customers who originally used rival products. However, it is well known that greater openness also means more risk, so it is critical to maintain the security of the cloud while implementing a multi-cloud strategy. It was on the basis of this consideration that Google finally decided to acquire Mandiant. Although Mandiant is not outstanding in terms of its own performance, its vulnerability assessment and consulting expertise can make up for Google Cloud's shortcomings in security.
Although Curian has not been in charge of Google's cloud business for a long time, his "multi-cloud" strategy has helped Google successfully surpass the original third Alibaba Cloud. Perhaps when the acquisition of Mandiant is completed and more functions are integrated into the cloud, Google Cloud will really have the strength to compete with AWS.
Competitors in China's cloud market
The pattern of China's cloud market can be roughly summarized as "three heads leading, how strong to rise together". Whether in the IaaS, PaaS or SaaS markets, Alibaba, Huawei and Tencent occupy the leading positions. For different delivery models, the follow-up rankings are different, in the IaaS market, Baidu Cloud ranked fourth, while in the PaaS+ SaaS market, China Telecom Tianyi Cloud ranked fourth.
Alibaba Cloud
From the perspective of development history, Alibaba Cloud and AWS are very similar, and it was originally born out of its internal IT online support. As early as 2009, Wang Jian, then the chief architect, set up a cloud computing department, designed a cloud-based IT architecture within Alibaba, and developed a "Feitian" operating system suitable for large-scale computing. Initially, the use of cloud computing was to cope with the computing needs brought about by the doubling of Taobao and Tmall businesses at that time, but perhaps inspired by Amazon, Ali soon discovered the potential of the business itself.
Since 2014, Alibaba has begun to export its cloud capabilities to the outside world. As a result, in 2014 alone, the cloud business generated 1 billion yuan in revenue for Alibaba. Ali, who has tasted the sweetness, has increased its investment in cloud business, focusing on market areas such as finance, government affairs, e-commerce, and mobile Internet, and has developed and launched a large number of cloud service products. At the same time, Alibaba has also launched an ecological co-construction strategy, actively cooperating with enterprises to promote its IaaS products and helping these enterprises complete digital transformation. This kind of early layout and preemptive play not only allows Alibaba Cloud to ride the dust in China, but also allows it to do its business overseas and become the world's third largest cloud service provider.
However, as competitors continue to join, Alibaba's cloud profits began to narrow. In order to achieve new breakthroughs, Alibaba Cloud has been advocating the transfer to the intelligent cloud since 2017. At this stage, Ali integrated its advantages in artificial intelligence into the cloud and developed PaaS products such as ET Brain. At the same time, in order to further reduce costs and improve security, Alibaba has also carried out a lot of independent research and development in the fields of chips, servers, and switches.
With the help of first-mover advantage and continuous investment in research and development, Alibaba Cloud has maintained the first position in the domestic cloud service market. However, compared to its heyday, its share has been greatly reduced. Especially since last year, due to the impact of regulatory and other factors, Alibaba Cloud's growth momentum has declined greatly. According to the latest quarterly report, its year-on-year growth rate in the first fiscal quarter was 10%. Although it is still considerable from the numbers, it is no longer the same as the growth rate that has been several times in the past. In the next few years, Alibaba Cloud may face a very difficult defensive battle.
HUAWEI CLOUD
Among the many enterprises in China, Huawei is the first to see the opportunity of cloud computing. In 2010, the China IT Leaders Summit staged a famous scene: when asked about his views on cloud computing, Robin Li said that it was just a new bottle of old wine, and Ma Huateng also thought it was too early to talk about cloud computing. But in the same year, Huawei launched the "Cloud Sail Plan" and officially announced its cloud computing strategy. From this point of view, Huawei should be the second large-scale enterprise in China after Ali to clearly lay out cloud computing.
However, perhaps because Huawei was fighting in its main telecommunications business at that time, it did not pay much attention to the new cloud business, and the domestic awareness of the cloud was still very low, so its cloud business was relatively slow to develop for a long time.
It was not until 2017, when the performance of Alibaba Cloud and Tencent Cloud grew rapidly, that Huawei realized the true value of the cloud business. After that, Huawei rose to catch up. Leveraging its strong advantages in software and hardware, Huawei provides multiple cloud solutions for enterprises to help customers achieve digital transformation. Subsequently, HUAWEI CLOUD focused on the improvement of computing power through the "one cloud, two wings and two engines" cloud computing industry layout. In 2020, Huawei announced the merger of related business lines such as cloud, computing products, storage and machine vision products, and officially established cloud and computing BG. On this basis, HUAWEI CLOUD proposes Cloud Native 2.0 for the first time, redefines hybrid cloud, comprehensively empowers industrial upgrading through application, data, and AI enabling fields, and builds a cloud infrastructure base based on DynaSky architecture. In April 2021, Huawei cancelled the one-year-old Cloud and Compute BG and renamed it "CloudBU" and reported directly to the ICT Infrastructure Business Management Committee.
At present, Huawei is temporarily ranked second in China's cloud market, but its catch-up momentum is very rapid, and its future is unlimited.
Tencent Cloud
On the surface, Tencent is not a prophetic role in the cloud field. But in fact, within Tencent, the idea of the cloud was already applied in 2010. However, cloud computing at this time is mainly used to support Tencent's internal C-end business, rather than the B-end business that we are more familiar with.
Tencent Cloud's first appearance to enterprises was in the "online ride-hailing" war in 2014. At that time, due to the introduction of huge subsidies, the number of customers on the Didi platform surged, and Didi's network almost collapsed. In this situation, It was Tencent that sent cloud technicians to help Didi get through the difficulties. In this process, the power of Tencent Cloud has also been verified.
Subsequently, Tencent Cloud officially moved from behind the scenes to the front desk, exporting power to the outside world on a large scale. Unlike Ali, which is fully engaged in the development of B-end customers at this stage, Tencent has adopted a strategy of attaching equal importance to B-end and G-end in the development of customers. This choice is very wise. Compared with B-end enterprise users who pay more attention to practical results, G-end government users will pay more attention to the experience of use, and at this point, Tencent, which is familiar with the C-end market, has an innate advantage. At the same time, because many enterprises are facing the problem of interconnection with the government cloud, they have seized the bull nose of the G-end, and the development of the B-end market will be much easier. Looking back now, this should have been well verified. Under the dual blessing of technology and services, Tencent Cloud has sprung up, not only ranking in the top three in China's cloud market, but also surpassing IBM and other fierce competitors in the global market, ranking in a relatively high position.
Heroes
It should be pointed out that compared with the world, the control of giants in China's cloud computing market is much weaker. After the top three, there are still many strong competitors who are constantly catching up. For example, Baidu Cloud, Tianyi Cloud, JD Cloud, etc., their strength is very good, especially in their respective niche markets, they have strong strength. It is worth mentioning that recently the "short video double male" of Douyin and Kuaishou has also joined the competition for the cloud computing market. In particular, Douyin has launched the enterprise cloud service platform "Volcano Engine", and has built a complete product system relying on the capabilities of its software factory. Perhaps, the pattern of the entire Chinese cloud market is quietly changing.
What's the way forward?
There is no doubt that whether in the global market or the Chinese market, cloud computing will be an important battlefield for giants to compete for a period of time in the future. Globally, the entire IaaS market is becoming saturated as cloud penetration continues to increase, and the focus of competition is concentrating on the higher-margin PaaS and SaaS markets.
Relative to the global market, the Chinese market is still not obvious due to its late start, but if there is no accident, in the near future, this situation should also appear. In this context, if you want to win in the cloud market, you must try to reduce the cost in the homogeneous market of IaaS, and increase the service category on the differentiation of PaaS and SaaS to meet the personalized needs of users. All of this will be a comprehensive test of the ability of this market participant.