Published: 02 August 2023
Summary
Hyperscale cloud providers, such as Ali Cloud or Tencent Cloud in China, have announced the price cuts strategy for their core products and services, and started price wars. I&O leaders should understand the impacts on the cloud market dynamics and adjust their cloud strategies.
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Overview
Impacts
The price cuts by cloud providers canpotentially reduce I&O’s cloud cost and improve cloud efficiency after addressing potential risks.
As competition intensifies, some small cloud providers might withdraw from the cloud computing market and cause negative impacts for I&O’s cloud strategy in the long term.
The authenticity, scope and duration of price cuts may have an uncertain impact on I&O’s cloud strategy.
The pricing changes provide new incentives for I&O leaders to leverage cloud providers’ differentiated services beyond their primary cloud providers.
Recommendations
To adapt to the impacts of the price cuts by cloud providers in China, I&O leaders responsible for cloud strategies and
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