Tencent Holdings-the Chinese tech major, is eyeing to investing 500 billion Yuan ($70 billion) in the upcoming five years during which it will be investing in latest technological infrastructure market inclusive of Cloud Computing, Artificial Intelligence and Cybersecurity arena, as stated by the firm.
This announcement comes in the wake of recent Chinese Government’s command for a complete tech-driven structural upgrade for the second-largest global economy through investment in “latest infrastructure” as well as a boom in demand for commercial software as well the cloud services.”
The firms Senior Executive Vice President Dowson Tong, in an exclusive interview with South China Morning Post, a native media reported that “this fundamental core investment would as well benefit another varied latest technological advancements and giant sectoral growth factors like: –
- Big data centers,
- Supercomputer centers,
- Internet of things (IoT)
- Operating systems,
- 5G networks and
- Quantum computing
- Robotics and ML
The firm Tencent, believes that these major disruptive, yet advantageous forces would support them to mitigate the after effects of the losses sustained due to the recent global health-economic crisis, as they are certain that the markets will gradually bolster and there is huge expectation from the embracing of Enterprise Software Services (ESS) from the public sector and offline industries during the long run.”
The firm is the owner and prevalent for its WeChat Messaging Application and as well as is well known brand for varied online games within the territory as well as globally. Post the easing up of the otherwise deadly and the most troublesome economic environment still prevailing globally, the firm is eyeing upon its major expansion plans into multiple business services primarily due to declining consumer internet growth as well as paradigm shift of a firm’s core IT operations from onsite-premises data centers to the cloud networking.
According to data reports from the research firm Canalys, Tencent with 18% during the fourth quarter of 2019 comes distant second only to Alibaba Group Holding Ltd (BABA.N) that holds an impressive 46.4% command over the entire China’s Cloud Spectrum.
Tong further stated to a local media (Guangming Daily), that with the “Speeding up the ‘latest infrastructure’ strategy will further support the firm in strengthening the crisis containment success.”
Further, Constellation Research analyst Holger Mueller stated to the media that “the firm’s assured investment strategy, mission and vision is utmost remarkable due to its sheer size, but as well due to being first of its kind commitment as stated by a Technological group post the health and economic crisis situation with the firm already pitching higher stake for a whopping capital infrastructure investment as being one of the crucial backbone amongst other cloud players.”
He further stated that “A mind boggling $70 billion is no mean investment, and it is the initial announcement of this type from China. Now, all eyes will be bent on what exactly Tencent-the Chinese tech giant is planning to do, though a native expansion is likely at the top of its list and post it a global expansion in next five years down the lane.”
During the previous month in May, Tencent launched its initial blockchain accelerator program called Tencent Industrial Accelerator. In a press release, the firm backed up and revealed that as the crux part of its blockchain accelerator program, it will tutor 30 companies in three major areas of distributed ledger technology (DLT), that also specializes finance, logistics, supply chain, as well as more.