A digital assistant to enable local businesses to expand in China

THE rapid adoption of cloud computing over the past five years has helped to unlock the potential of emerging technologies such as artificial intelligence (AI) and Internet of Things, and will likely continue fuelling innovation in the next decade. Indeed, cloud technology was identified by the World Economic Forum as one of seven core technologies that are transforming industries around the world.

"Globally, businesses are recognising the importance of the cloud in driving their digital transformation journey, and demand for cloud-based solutions has grown in tandem with companies shifting to a digital-first presence," says Poshu Yeung, Senior Vice-President, Tencent Cloud International.

As one of the leading cloud service providers in China, Tencent Cloud has been expanding globally amid the acceleration of cloud adoption by businesses. Tencent Cloud has reported strong revenue growth over the past two years.

"We witnessed a surge in interest from companies around the world looking to expand their business online. We saw 100 per cent year-on-year growth of our business globally, further underscoring the trust and expertise customers worldwide see in us," says Yeung.

The company also generated healthy year-on-year growth in South-east Asia, specifically in the financial services, e-commerce, pan-entertainment, audio and video, as well as gaming sectors. Looking ahead, Yeung expects these sectors to be the primary growth drivers for Tencent Cloud in the coming years.

"In South-east Asia, we have seen growing interest from companies exploring cloud technologies and upgrading their current infrastructure," says Yeung.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

Adroit Market Research estimated in 2018 that the region's cloud computing market revenue would reach US$40.32 billion by 2025.

Tencent Cloud has also witnessed substantial above-market growth in infrastructure services, as well as rapid growth in the company's Platform-as-a-Service and Software-as-a-Service offerings.

Supporting expansion in China

Leveraging the expertise and capabilities of Shenzhen-headquartered technology conglomerate Tencent, Tencent Cloud serves numerous multinational companies (MNCs) globally, helping them grow their business in the vast Chinese market.

"We have developed deep expertise within the gaming sector, audio and video technologies, social communications, and fintech services within China, enabling us to provide extensive support for our customers. Coupled with our deep understanding of Chinese culture and our customers' needs, Tencent Cloud is one of the preferred partners for overseas businesses looking to enter the Chinese market," explains Yeung.

Tencent Cloud utilises a five-step go-to-market process that aims to puts its clients on the path to success in China (see sidebar). Beyond helping overseas businesses in China, the company also aims to help Chinese enterprises succeed in international markets.

C2B2C strategy

Tencent Cloud employs a "C2B2C" strategy to differentiate their offerings from the competition. On the business side, the firm provides leading infrastructure and underlying technical support for its customers, which is customised and adapted to their evolving needs.

"Always at the forefront of cutting-edge innovation, we continually incorporate the latest innovation to help identify new business models and opportunities for our customers," says Yeung.

On the consumer side, Tencent has major social platforms WeChat, Weixin and QQ which reach billions of users. These platforms also allow businesses to connect with their customers directly through Official Accounts, Mini Programs and digital payment services, helping enterprises better serve their users, improve the efficiency of matching supply and demand, and ultimately close the loop for C2B2C.

Meanwhile, Chinese companies looking to grow globally can rely on Tencent Cloud's worldwide infrastructure across 68 "availability zones", even as the firm continues to build new internet data centres (IDC) to support its customers' growing business needs.

Customers also enjoy access to local teams with in-market expertise, as well as a comprehensive cloud partner ecosystem that provides seamless integration between partner products and services and Tencent Cloud's own vertical solutions.

Customer focus

To meet a diverse range of customer needs, Tencent Cloud has deployed over 300 cloud solutions and products internationally, including the Asia-Pacific region.

"We put our customers first with industry-leading cloud offerings that aim to help enterprises in all aspects of their business. As we continue to expand our IDC network, customers can be assured that we can scale according to their needs," notes Yeung.

Tencent Cloud has so far launched six new IDCs in 2021 alone. In South-east Asia, the company rolled out its first IDC in Indonesia in April and launched its second and third IDCs in Bangkok and Singapore, respectively.

"With years of experience in technological innovation and an extensive global infrastructure network, Tencent Cloud can better support a business' expansion into new markets. We combine both local expertise with a global infrastructure and are one of the preferred partners for many businesses entering China," says Yeung.

"We have a proven track record collaborating with many MNCs and are committed to devising a unique China Connect solution which aims to help companies enjoy a smooth and successful entrance into the Chinese market."

The road ahead

Going forward, Tencent Cloud will continue to work on improving its products and technology solutions to support its customers across all stages of their digital transformation journey. This will involve providing them with the infrastructure and software capabilities to adopt cloud technologies, data analytics services, among many other applications.

Reflecting its success in this space, Tencent Cloud has been recognised by many reputable consulting companies in recent years, including being placed at Gartner's Magic Quadrant for Cloud Infrastructure and Platform Services in 2020 and 2021.

"We do not believe in the cookie-cutter approach; we customise and develop solutions that are tailored to the unique demands of each customer. This continues to be our commitment to our clients as we collaborate with them to expand into China and other parts of the world," says Yeung.

He added: "As a visionary cloud provider, Tencent Cloud is expanding and strengthening its global network to ensure our customers have a seamless experience. Within local markets, we are committed to providing world-leading support and are expanding our teams."

Tencent Cloud has developed a five-step go-to-market process that seamlessly puts their clients on the path to success in China.