On November 1, market research firm Synergy Research Group (hereinafter referred to as "Synergy") pointed out in the latest research report that Amazon cloud computing service AWS is far ahead of competitors in the market competition. Synergy pointed out in the latest quarterly analysis of the cloud computing market that AWS currently accounts for 45% of the revenue of public "architectural as a service" (IaaS) providers. In the architecture-as-a-service market, Amazon's size has surpassed the total of two to four competitors: Microsoft, Google (microblogging) and IBM. In the last quarter, Amazon AWS revenue has exceeded $3.2 billion. This year, AWS revenue is expected to reach about $12 billion.
On the evening of November 2, Alibaba Group announced the results of the second quarter of fiscal 2017 (July 1, 2016 to September 30, 2016), the cloud computing business remained strong, and the number of paying users increased to 651,000, pushing Ali Cloud revenue reached a record high of 1.493 billion yuan, a year-on-year increase of 130%. The sixth consecutive quarter of growth led the world, highlighting the strong momentum of expanding market leadership after the outbreak cycle.
According to the financial report, the number of paid users of Alibaba Cloud Computing increased by 108% in the second quarter of FY2017, covering a wider range of industries and enterprises such as finance, medical care, public transportation, energy, manufacturing, government agencies, games, and multimedia. This is the third consecutive quarter of Alibaba Cloud's disclosure of cloud computing paying subscribers. In the first two quarters, the number of cloud computing paying subscribers has maintained a three-digit increase.
In the same quarter, the world's major cloud computing service providers all showed significant growth. In the global cloud computing 3A (AWS, Azure, Alibaba Cloud) camp, Alibaba Cloud continued to lead the market with 130% revenue growth. During the same period, Amazon AWS revenue increased by 55%, Microsoft Azure revenue increased by 116%.
Alibaba's financial report shows that Alibaba Cloud continues to expand its market leading edge. More than 35% of websites in China are secured by Alibaba Cloud. In the 2016 Hangzhou Yunqi Conference held in October this year, more than 40,000 technology elites from around the world attended the event, and more than 7 million people watched the live broadcast online, becoming one of the largest technology events in the world.
At the same time, the financial report also shows that in addition to the basic IaaS services, the application of Alibaba Cloud users to data computing, security and other services is also growing. Recently, Hangzhou City announced the Hangzhou City Data Brain Project, using Alibaba Cloud ET artificial intelligence technology to conduct global real-time analysis of the city and automatically deploy public resources.
In terms of products, in October this year, Alibaba Cloud announced that due to economies of scale and large-scale technology upgrades of this year's flying operating system, the price of cloud products in China was reduced across the board, and the price of core cloud products fell by up to 50%. At the same time, in this year's Tmall Double 11 Global Carnival, Alibaba Cloud will promote the enterprise-level market, giving a 50% discount or even lower discount on a large number of cloud products, accelerating the popularity of cloud computing to cloud computing users. The economies of scale brought about by the breakthrough of Pratt & Whitney's new technology.
According to public information, Alibaba Cloud has carried out 17 product price reductions in the past year. Deutsche Bank released a research report on October 20, saying that lowering the price of cloud products will stimulate the growth of Alibaba Cloud's paying subscribers, thereby driving its revenue growth. Analysts at the bank expect that Alibaba Cloud's repeated price cuts will trigger market follow-up and accelerate the evolution of China's cloud computing market.
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