Netease ends one of its public cloud services as a competition in the Chinese Cloud Computing market intense.
The internet and gaming company based in Hangzhou on Friday informed corporate customers that the service would be held on April 7 as a result of “regulation of business strategy”. Customers with unused credits may request a refund according to the report Southern china Morning post.
The representative of the customer service confirmed this decision and advises to migrate to other cloud platforms before switching off. The service domain, 163yun.com, now redirects visitors to Shufan, Big Data Business Solutions Netease.
Neteas spokesman said that the service used a small number of customers in mainland China. “We have arranged a specialized team that communicates with existing users to alleviate the impact on them,” the spokesman added.
Pressure from the competition and growth of AI
The NETEAS decision to close its cloud service comes when the Chinese public cloud market is experiencing rapid growth led by artificial intelligence (AI). According to analysts, society tried to keep up with the pace of progress related to AI.
Ivan Lam, a senior analyst company Consultany Counterpoint, NedED, which creates a new dynamics on the Chinese public cloud market. The IDC China report said in October that the domestic market increased by 8%in the first half of 2024, which was powered by an increase in DE for AI related services.
However, AI cloud services require significant investments. Alibaba recently announced an investment of $ 52 billion in cloud computing and AI infrastructure in the next three years, a large project of its kind by a private Chinese company. The solids also made considerable investments to strengthen its AI capacity.
Li Chengdong, founder and main analyst in the Beijing consultancy Dolphin, said that Netase lacks the competitive advantage of its opponents. While Alibaba and Feddings have launched successful AI models AI-RIBABA ALIBABA and SATEDANCE’S DOUBAO-MODELY FUXI AI NELETEAS SEE focused on specific industrial applications such as robotics and video game development.
Strategic shift towards basic business
Closing is a strategic shift in NETEAS to strengthen its main industries, especially video games. The company was a key player in the Chinese gaming industry and this supplement suggests a step towards consolidation of resources and focusing on markets where it has an advantage in the competition.
Competition on the Chinese cloud market AI is expected to grow as providers of investment in computational infrastructure and adapted solutions. Lam said that the main players are likely to continue to expand their cloud skills to satisfy the growing demand of AI.
(Photo: Unsplash)
See also: Security of cloud documents: proven procedures
Do you want to know more about cyber security and cloud from industry leaders? Check out Cyber Security & Cloud Expo in Amsterdam, California and London.
Explore other upcoming events and webinars with technology and webinars driven Techforge here.