Revolutionary Adoption of Live Streaming in Cloud Market
In a bold move, Chinese cloud service giants have embraced live streaming for product promotion, igniting a fierce price war to entice small and medium-sized enterprises (SMEs).
Pioneering this innovative trend, Huawei Technologies launched six live sessions commencing on March 22, offering discounts of up to 90% as part of a “cloud purchase festival.” Following suit, Alibaba Group Holding Ltd and JD.com Inc hosted their respective live broadcasts, signaling a paradigm shift in cloud marketing strategies.
Alibaba’s session, spearheaded by internet sensation Luo Yonghao, attracted more than 2.3 million viewers and onboarded over 1,000 SME clients for their cloud services, according to reports.
Competitive Landscape and SME Benefits
The convergence towards live streaming as a promotional tool underscores the heightened competition among cloud providers, resulting in decreased prices that benefit SMEs seeking affordable app development, website launching, and data storage solutions.
Both Alibaba and Tencent Holdings Ltd announced substantial price cuts of up to 50% in May of the previous year, with Alibaba Cloud further reducing prices on 100 core products this February.
Market Growth and Dominance
Analyst Liu Lihui from IDC emphasizes that competitive pricing strategies are vital for securing a strong foothold in the market.
In the fourth quarter of 2023, China’s spending on cloud infrastructure services surged to $9.7 billion, witnessing a 22% year-over-year rise and claiming 12% of the global cloud expenditure, as per a report. The Chinese cloud market exhibited a 16% growth throughout 2023, surpassing the previous year’s 10% uptick. Predictions suggest this growth trajectory will persist, with an anticipated 18% upswing in 2024.
During the final quarter of 2023, Alibaba Cloud, Huawei Cloud, and Tencent Cloud – China’s leading cloud service providers – dominated the market, achieving a remarkable 28% growth and securing a commanding 74% market share.
Investment Opportunities
Investors keen on tapping into critical Chinese tech companies can consider avenues such as IShares China Large-Cap ETF and KraneShares Trust KraneShares CSI China Internet ETF.
Price Action: BABA shares displayed a 0.70% increase, trading at $72.96 during the latest check on Thursday.
Disclaimer: This content was collaboratively created and reviewed by Benzinga editors.
Photo by Fooksou Lamimo via Wikimedia Commons