On 26 October, IDC announced the “IDC China Public Cloud Service Tracker, 2022H1”. The report indicates the overall scale of the public cloud service market in China (IaaS/PaaS/SaaS) in the first half of this year hitting US$16.58 billion, with 27.3% of Year-on-Year (YoY) growth in the IaaS market and 45.4% YoY growth in the PaaS market. Taking a closer look at the IaaS and PaaS market, the increase hit 30.7% YoY for the period, which is 18% slower than the growth in the same period last year (48.7%).

According to IDC, eSurfing Cloud of China Telecom rose one place up and ranked third with 11% of market share in the China public cloud IaaS market in the first half of 2022, with 1.4pp YoY growth. In the IaaS and PaaS market, we ranked fourth with 11.0% of market share and a 1.2pp YoY growth.

Since 2012, eSurfing Cloud has been established for 10 years and achieved leap-forward growth continuously in terms of business scale. Between 2018 to 2021, eSurfing Cloud led the market share in the public cloud IaaS market for four consecutive years. Adhering to the strong momentum of development, we continue to reach to a new height in the ranking.

According to the mid-year financial report of China Telecom, eSurfing Cloud’s revenue reaches RMB 28.08 billion in the first half of 2022, which has grown 100.8% year-on-year. Doubling the revenue this year, we are happy to announce that our half-year revenue exceeds full-year revenue of 2021. On top of the rapid business development, eSurfing Cloud has also comprehensively enhanced its capabilities in resources, technologies, products, and ecosystems.

eSurfing Cloud has sped up the construction of new infrastructure through “cloud-network integration”. With the “2+4+31+X” resource coverage and enhanced infrastructure, it is able to build an efficient “computing network” to achieve cooperative scheduling and efficient operations for large-scale computing in China, as well as building a solid foundation for the digital economy.

eSurfing Cloud is also capable of improving the core technology to solve bottleneck problems by adhering to independent research and development (R&D). In the first half of the year, we held a press conference focused on the innovative results for eSurfing Cloud 4.0, and launched 7 products with our strong R&D capabilities. This helps achieve comprehensive enhancement on cloud foundation, cloud platform and cloud security.

Last but not least, eSurfing Cloud empowers multiple companies to interconnect and collaborate digitally. During a conference hosted by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) in July this year, China Telecom announced that it is partnering with strategic investors from severalcentral enterprises to build national cloud companies and to accelerate the construction of cloud technology ecosystem by deploying innovative technology, infrastructures, and security. Based on the standard framework of eSurfing Cloud, we are accelerating digital transformation and digital development for companies in China by collaborating with different industry partners.

According to IDC, cloud operators are maintaining high growth and high investments. Moving forward, eSurfing Cloud will continue to strengthen product innovations based on cloud foundation and fully integrate business with digital infrastructure together with the capabilities of cloud and ecosystem.