This is the 871st post from Jingdong Digital.
Cloud computing and cloud more or less have **** common place, the cloud Shu volume free, as the amount of cloud computing resources, elastic scalable; cloud can be drifted to a different location with the wind, and cloud computing, most of the time, the user does not know where the data center is deployed, but it is practically there.
This cloud is still expanding - according to the China Academy of Information and Communication Research released a white paper on the development of cloud computing (2020), in 2019, the global cloud computing market size reached $ 188.3 billion, with a growth rate of 20.86%, and it is expected that the average growth rate in the next few years will remain at about 18%. In the same year, China's cloud computing market size was 133.4 billion yuan, with a growth rate of 38.6%.
There are two values worth exploring, one, China's cloud computing market is extremely large, accounting for about seventy percent of the global market; and the other, the growth rate is extremely fast. This means that the cloud computing market, which has been developing in China for more than a decade, is ushering in a new "battle of the gods".
The new battlefield will shift from the public cloud to the proprietary cloud, and in the next decade, it will be the world of the proprietary cloud.
Why are proprietary clouds better suited to the digital transformation of traditional enterprises? How do you choose the right cloud provider for your business? How can cloud players capitalize on this opportunity?
While the consumer Internet has long been characterized as "the traffic dividend is exhausted," a new round of development dividends have shifted to traditional industries, whose needs for computing, data storage, and so on, during the digital transformation, have created opportunities for cloud computing. The report shows that 95% of enterprises believe that cloud computing can reduce enterprise IT costs, and more and more industry users, such as banks, real estate, aviation, retail, manufacturing, agriculture, there is a demand for cloud.
In addition to the enterprise's own needs, the policy has also begun to tilt towards cloud computing. This year, the new infrastructure was written into the work report, CCTV listed seven new infrastructure focus, big data centers, 5G infrastructure, artificial intelligence and industrial Internet is listed. New infrastructure will undoubtedly greatly increase the future demand for data storage and computing, behind the need for cloud computing as a base. As of July 2020, more than 20 provinces have released new infrastructure plans, and Guangdong alone has proposed 590 million yuan of new infrastructure projects.
With the digital transformation of enterprises as the internal drive, the new infrastructure to promote the external drive, the cloud computing market, a new round of outbreak, there is its market underlying logic.
And from the evolutionary trend, cloud computing has emerged from a single private cloud, public cloud form, to the proprietary cloud, hybrid cloud-based multi-cloud form of evolution.
The main difference between them is the main body of cloud resources:
① Public cloud : Cloud products and services provided directly by the cloud service provider, the enterprise needs to host the data in the service provider's data center, and therefore the mastery of the data is relatively weak. However, it is flexible, elastically scalable, and low-cost.
② Private cloud : Cloud service providers to build a separate service system for the enterprise, the deployment of server rooms, servers, can be customized to meet the needs of the business side of the program. It is more suitable for industries with high data security requirements, such as government departments, and is more costly to deploy and requires regular operation and maintenance.
③ Hybrid cloud : Public cloud is too open, data security is not enough; private cloud is too closed, operation and maintenance cumbersome high cost, at the same time, the data circulation range is limited, so the hybrid cloud will be a combination of the two. The public cloud is used to deploy services that are not highly confidential, and the private cloud is used to deploy core sensitive data, and to build a bridge between the two, using a proprietary intranet channel to communicate.
④ Proprietary cloud : Proprietary cloud and hybrid cloud have **** common, the same is the data according to the confidentiality of the classification, and are deployed in different resource pools. The difference between the two is that the hybrid cloud is still to build a private cloud for the enterprise, while the proprietary cloud is provided directly by the cloud service provider "dedicated" cloud partition, from the physical level of isolation from the virtualized resource pool. A proprietary cloud is formally more like a hybrid cloud, but at a lower cost.
In the past two years, the proprietary cloud market has grown significantly. According to Avery Consulting's 2020 China Proprietary Cloud Industry Development Insight Report, the market size of China's proprietary cloud was 5.92 billion yuan by 2018, with an estimated five-year CAGR of 56.7%, and by 2023, the proprietary cloud market is expected to reach 55.94 billion yuan.
The private cloud market is also growing, but at a slower rate in relative terms, reaching $64.5 billion in 2019, up 22.8% year-on-year, and is expected to be around $150 billion in 2023, according to the Cloud Computing Development White Paper (2020).
The public cloud is a "big cake", almost divided up by the giants, and it is difficult for the long-tail players to overtake. China's public cloud market size in 2019 will be 68.9 billion yuan. Although the current growth rate is still impressive - 57.6% in 2019 - there is still resistance to the future development of public cloud.
First, data security. Even Ali Cloud, the industry's leading boss, has had a number of downtime accidents, and at the beginning of 2019, there was an IO HANG failure that paralyzed a large number of Internet companies in China, and since then there have been two consecutive failures. The customers of the public cloud are generally Internet enterprises and small and medium-sized enterprises, but changes in the market clientele are occurring, and traditional industries such as industry, government affairs, health care, finance and other traditional industries are accelerating to the cloud, and they have higher requirements for data security and service controllability, and they also favor proprietary cloud and private cloud solutions.
Second, latency.
The public cloud used to be a large-scale data center as a hub, and all the data from the massive number of terminal equipment conduction to the "center" for processing, consuming a lot of bandwidth resources, but also slowed down the data back to the cause of latency. For this reason, cloud vendors build physical and virtual resource pools in the near field of the enterprise, expanding computing power to the edge side, providing more rapid, end-to-end edge cloud computing services. In the "center + edge node" ecosystem, the proprietary cloud is a specific manifestation of the near-end distribution cloud, which is naturally in line with the direction of change of the public cloud.
At this point, the advantages of the proprietary cloud market are as clear as the sky after a rainy day.
Compared to the public cloud, it can effectively address data security and latency issues, and the deployment of near-end devices allows for faster access and elasticity without diminishing the ability to expand; compared to the private cloud, it combines the advantages of a flexible business architecture with the ability to avoid data silos, open up the cloud and local data, and realize bi-directional data transfer.
No vendors do not want to do incremental, in order to occupy the incremental market, vendors turn to the proprietary cloud, hybrid cloud; at the same time, based on their own past advantages of the launch of industry customized solutions.
It seems that the dust has settled, and the cloud computing field has entered the "aftermath market", and the smoke is rising again.
① Huawei cloud, Tianyi cloud: the launch of hybrid cloud, to meet the elastic expansion needs of government and enterprise users
Privacy, security is the first thing to consider the government departments, large enterprises on the cloud, but the security of the strongest in the use of the private cloud in the process, but also gradually exposed the elasticity to expand the ability of the problem, giving rise to the use of hybrid cloud requirements.
At present, China Telecom has cooperated with 31 provinces and more than 236 cities to build 11 provincial government cloud platforms, and up to more than 100 prefectural government cloud platforms. IDC ownership ranks first in China, and there are more than 700 data centers under the layout of "2+4+31+X" one province and one pool of national resources.
Under the existing layout of government resources, the hybrid cloud business transformation of Tianyi Cloud has come to fruition.
Huawei Cloud went one step further by discontinuing a single private cloud service outright. Before the innovation, Huawei communicated with past customers such as the People's Bank of China, the Audit Office, the Industrial and Commercial Bank of China, and the Ministry of Emergency Management, etc. Internet-driven business changes at a rapid pace, and the functionality and architectural innovations needed by users are difficult to solve with regular upgrades once a year, and the hybrid cloud is more in line with the demand for long-term use.
But Huawei Cloud faced a more complex situation than SkyCloud during the transition process. It started in the private cloud, has accumulated a large number of private cloud-related customers, if you want to upgrade the hybrid cloud of existing customers, the lowest cost way is to pass through the private cloud and public cloud through the data channel, but such a "collocation", in the process of continuous superposition of components, system upgrades, the R & D and operation and maintenance difficulties, the probability of a decline in the experience.
To achieve long-term experience stability, cloud service providers need to be based on the public cloud architecture, re-adjust the system. With such a drastic overhaul, how to prove that you can outperform your competitors in the hybrid cloud business and maintain the data security advantages you have enjoyed in the past is a key topic that Huawei Cloud needs to validate to its customers.
In 2016 and 2017, Huawei Cloud rapidly expanded the number of government customers, building local clouds for 660 cities. After abandoning the single private cloud, how to help former government and enterprise customers make the transition to long-term support will be the core breakthrough point for Huawei's hybrid cloud business.
② Jingdong Digital Finance Cloud T1: Providing solutions for the financial industry
Compared to the government business sector, the financial industry's urgency to go to the cloud is no less important.
On the one hand, the traditional banking business is severely impacted by the Internet, Internet finance is dividing up the market, and users are migrating online, and the 2019 China Banking Service Report shows that only 10.23% of banking business was completed over the counter last year; on the other hand, the development of the financial industry has not yet hit the ceiling, and wealth management, insurance, and securities are still in the early stages of development in China. Practitioners have the intention of expanding the gold mine.
The market environment dictates that financial companies must use online methods to reach users. Their rigid demand is: the same as the Internet companies to adopt an open architecture, easy to adjust and modify the product flexibility and agility; at the same time, in the user attraction, viscosity to maintain and provide more support.
To address these pain points, Jingdong Digital Technology launched T1 Financial Cloud, which covers financial proprietary cloud, digital operation platform U+, data middleware, technology middleware, and distributed relational database StarDB.
From the perspective of cloud computing, the financial proprietary cloud guarantees data security and elastic expansion, while the "one-stop mobile R&D platform" of the U+ platform provides the ability to develop APPs and mini-programs in the form of PaaS, with a much shorter deployment cycle, and it also provides APP full lifecycle management, including performance monitoring, crash problem analysis, and message pushing. It is understood that the PaaS platform can compress development resources to 38% and improve performance by more than 50%. With its support, Suzhou Agricultural and Commercial Bank quickly went online with its online lending system, intelligent customer service system, and mobile banking within a few months.
For financial customers, it greatly reduces the difficulty of development and operation and maintenance of the middle office and APP, and reduces the cost of the bank's digital transformation.
This is certainly not the end of the line, "financial industry solution exporter" T1 Financial Cloud, but also provides more in-depth operational services - "facsimile" intelligent marketing decision-making system to record the key touch points of user behavior, for a number of business scenarios to provide a refined operational strategy, to provide A/B testing, you can analyze and review strategy Effectiveness. Not long ago at the Jingdong Global Technology Explorers Conference, Jingdong Digital Technology Group Vice President Cao Peng also mentioned the "intelligent voice outbound robot", Jingdong Digital Science and Technology Robot daily call volume of more than one million, the conversion rate is 63% higher than the artificial call. In addition, "Eagle Eye" SMS marketing, "good research" user research, intelligent customer service, live broadcast, work order system and other solutions are also improving user stickiness.
It is in a period of rapid growth, according to the International Data Corporation (IDC) released "China's financial cloud market (first half of 2020) tracking", Jingdong Digital T1 financial cloud released within a year of the release of the financial cloud market hit 9.5% market share. It can be predicted that this number will continue to grow.
③ Ali Cloud, Tencent Cloud leveraging past advantages to pry new business
The essence of business is to rely on past advantages to create leverage, prying greater profits and the market, Huawei Cloud as such, Ali Cloud and Tencent Cloud is the same.
Aliyun's biggest trend this year is a good transformation of their original products, combined with the cloud platform foundation, and then create a digital native operating system, and then transformed into an enterprise application development platform. Such an operation, that is, conducive to infusion, and smoothly sink the cloud market services to small and medium-sized enterprises. It is worth mentioning that for large and medium-sized enterprises, AliCloud mainly pushes the proprietary cloud.
Tencent Cloud, on the other hand, has put forward an IoT eco-strategy, which is involved in the automotive and smart hotel sectors, and upgrades the business management system for enterprises with proprietary cloud and public cloud products. Its IoT strategy is a 2B2C one, and the important hand of development lies in WeChat traffic, which replaces all kinds of APPs with low open rates and increases the activity of IoT devices.
As a part of the new infrastructure, cloud computing is pouring into more and more industries, and its service form is becoming more refined and more grounded.
And from the user side, the adoption of multiple cloud service providers and multiple cloud forms is becoming more common. Data from the Flexera State of the Cloud 2020 Report shows that 93% of organizations have adopted a multi-cloud strategy, while 87% have adopted a hybrid cloud strategy, with respondents using an average of 2.2 public **** clouds and 2.2 private clouds.
The multi-cloud strategy has given rise to the demand for multi-network convergence, which is to open up the cloud across service providers so that the data deployed by the same enterprise in different cloud service providers can form interactions. At present, the SkyCloud has realized "one line multi-cloud", after the cloud, you can use a dedicated line to connect to other cloud service providers.
The path of cloud optimization has no end, multi-cloud convergence, multi-network convergence is becoming a new trend, once this process is completed, the cloud service provider is no longer difficult to borrow the past data precipitation to retain customers, the competition is still ultimately to return to the effectiveness of the solution.
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