Chinese tech giant Tencent is making strides in the cloud service industry by utilizing its WeChat super-app ecosystem to provide unique offerings to clients. Tencent Cloud CEO Dowson Tong highlighted the company’s focus on assisting clients in creating their own super apps, drawing from the technology and operational experience gained through the development of the WeChat platform. This approach sets Tencent apart from other major cloud service providers like Microsoft Azure, Amazon Web Services, and Google Cloud Platform, which collectively dominate 68% of the market.
Tencent’s strategy involves enabling enterprise clients to build mini programs within the WeChat network to attract users of the super app. This approach has garnered significant interest from sectors such as finance and government, with examples like Cambodia’s Canadia Bank partnering with Tencent Cloud to launch a mobile banking app. Super apps, such as WeChat, offer users a wide range of services within a single platform, including messaging, payments, and food ordering.
While Tencent’s super app ecosystem provides a comprehensive solution for users, it may not be the primary focus for cloud clients. Counterpoint Research analyst Wei Sun emphasized that cloud clients prioritize factors like infrastructure reliability, scalability, security, and compliance over integrated consumer-facing applications. However, the accumulation of user data through super apps can enhance client data strategies and provide additional value.
The global market for super apps is growing rapidly, with an expected compound annual growth rate of nearly 30% between 2023 and 2030. This growth presents opportunities for cloud service providers like Tencent to offer tailored solutions that cater to the needs of super app builders. Tencent Cloud’s integration of clients’ public cloud resources with on-premise private resources further enhances its competitive edge, particularly in the Chinese market where customization for social media, entertainment, video, and gaming industries is crucial.
While Amazon and Microsoft also offer hybrid cloud solutions, Tencent’s focus on personalized on-premise offerings specific to Chinese market needs sets it apart. By combining its expertise in super app development with cloud services tailored to client requirements, Tencent is well-positioned to continue challenging the dominance of global cloud giants in the industry.
