Tech giant Tencent Holdings Ltd plans to leverage its strengths in video games and social media to grab market share from incumbent Alibaba in China’s burgeoning cloud computing sector.
Tencent is best known for its WeChat messaging app and a suite of popular games but is aiming to expand into business services as consumer internet growth slows and companies shift number-crunching from their own computers to the cloud.
“Our focus will be to capitalize on the advantages that Tencent has with the global video games eco-system, and help more customers – some of whom are Chinese businesses going overseas, some of whom are local game developers in foreign markets,” said Senior Executive Vice President Dowson Tong.
Tong listed gaming strengths such as audio and video communication as well as server management capabilities.
Tong said that the industries Tencent is targeting include mobility, fitness, and finance. He said the firm is also expanding its cloud business internationally, and seeking partners in South Korea and Southeast Asia to offer cloud-based games.