According to Wang, public cloud IaaS, as basic IT structure provider, is like basic energy such as water and electricity. In this case, it’s unlikely SOEs will dominate the market. Instead, the market will be rather diversified. Therefore, three large-sized companies and four to five small and mid-sized companies will co-exist. After all, no client will choose only one cloud service provider for safety’s sake.

　　Besides, while American companies turn to cloud service for the sake of technological upgrading and cost, many Chinese companies do so because they have to. How come?

　　On the one hand, American companies can meet their clients’ needs with their own IT and service capability, so they turn to cloud service to achieve technology upgrading or to save cost. Chinese companies often lack proper IT and service capability, so they won't be able to provide basic service without cloud service.

　　On the other hand, Chinese cloud service providers entered the industry rather late. Although they have to face harder obstacles, they also have more opportunity. Therefore, Chinese cloud service providers often develop pretty fast, and there are more cloud service providers in China than in the US.

　　In comparison, the market structure of the American cloud computing market has almost been settled. Since 2007, Amazon has provided cloud computing service for almost a decade. According to Synergy Research Group’s statistics, Amazon accounted for 45 per cent market share in the American cloud service market. Other service providers such as Microsoft, Google, IBM all have their own place in the market. However, it is probable that there won’t be new entrants into the market in the future

　　Although Alibaba Cloud also accounted for 40 per cent of market share, the Chinese cloud computing market is full of variables. Without giant IT companies, China’s cloud computing companies are almost all backed by internet companies.

　　“We believe that the first half of the Chinese public cloud IaaS market battle has come to an end,” Wang told TMTPost. How come?

　　First of all, the market has developed for seven to eight years. While Alibaba Cloud has been established for eight years, other major players have also developed for around five years or so. Although Tencent Cloud and Kingsoft Cloud managed to catch up with Alibaba Cloud, it could still be quite challenging for other companies to catch up. The time left is simply not enough.

　　Secondly, almost all cloud service providers, abroad and at home, started from providing cloud services for internet companies. The first batch of clients are almost all internet developers, startups and internet companies.

　　Thirdly, the cloud service market started from internet and grew mature thanks to internet. The penetration rate of public cloud service in the Chinese internet industry has reached almost 100 per cent. As major Chinese public cloud service providers continue to improve their technology and product quality, the threshold is getting increasingly high for late entrants.

　　In a word, major players have already entered the Chinese public cloud market and formed a steady market structure. With no dominant player in the market, different players will manage to maintain their position through differentiated development.

　　There’s no boundary to Kingsoft Cloud’s future development

　　At present, Kingsoft Cloud’s business scale has surpassed game, video, government, health, finance internet and the emerging AI sector. Besides, Kingsoft has already developed its plan for its future development in the game, video and AI sector.

　　“Above all, we need to get more enterprises turn to cloud service based on our basic IaaS capability. The more clients we have, the more needs they have, and the more thoroughly we can exploit the potential of the market. As a result, we will be able to provide better service for our clients and add more value to them.

　　In the game sector, we shall help improve our clients’ operation and data mining capability, improve their efficiency and as a result improve the quality and conversion rate of their games;

　　In the video sector, we shall base on our basic cloud video service and continue to promote the commercial usage of H.26 codec, so that our clients can save more cost and earn much more;

　　In the AI sector, we shall help clients design more application scenarios and collaborate with them in providing more end-to-end services in various scenarios.”

　　“Besides the internet industry, we shall also gradually enter other industries along with the spread of internet. It is estimated that the Chinese major industries will all be supported by cloud computing in five years. From this aspect, there’s no limit to Kingsoft Cloud’s development. All we need to do is get familiar with the know-how of different industries,” Wang explained.