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Tencent to Compete Alibaba in Cloud Business – Invests $1.57 Billion

Tencent

Chinese Internet major Tencent Holdings Ltd. has shared clear intention to dip his foot into cloud-computing business. The company will invest 10 billion yuan ($1.57 billion) over the next five years to construct and operation of data centers in China, Hong Kong and America.

Last month, Tencent key competitor Alibaba has invested $1 billion to its existing cloud infrastructure expanding international business.

Tencent, majorly focuses into online games and social networks are boosting investments to spur their cloud-computing capabilities in the domestic market as well as overseas.

For both Tencent and Alibaba, cloud services currently account for only a fraction of their revenues. Still, analysts expect the businesses to expand in the coming years.

The compant reported that its annual revenue stood at 78.9 billion yuan last year and now will encompass in the cloud business every year for the next five years. Special marketing strategies are upheld to hire new talents who can take this business to a challenging game.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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