Chinese language tech firm Tencent is a gaming large and the dad or mum firm of WeChat, the ever-present social messaging app in China.
Cheng Xin | Getty Photographs Information | Getty Photographs
Tencent has spent years evolving right into a gaming and social media large in China and within the course of, has constructed up its cloud computing capabilities.
The expertise agency is now trying to convey that experience to Europe because it ramps up growth of its cloud enterprise abroad, Dowson Tong, CEO of Tencent’s cloud group informed CNBC.
“We’ve got strengths and competence in very particular expertise areas, in addition to business verticals,” Tong stated in an interview final week. “These are are very distinctive expertise capabilities which have been developed over a few years [and] began from our merchandise in China.”
“So we intend to convey lots of this expertise experience to Europe. We’re speaking to lots of potential prospects.”
Tencent’s European push will pitch it in opposition to U.S. hyperscalers Amazon, Microsoft and Alphabet-owned Google, which collectively make up 70% share of Europe’s cloud market.
However the Chinese language agency is hoping to deal with particular areas the place it has constructed up capabilities to distinguish from rivals.
Tong stated these embrace cloud applied sciences for areas like optimizing video streaming, guaranteeing a clean gaming expertise, and creating and internet hosting so-called “tremendous apps” like WeChat — China’s greatest messaging service. WeChat is usually seen because the pioneer of tremendous apps, a time period that refers to an utility with a number of features, similar to messaging and funds.
Tong gave an instance of Tencent’s cloud computing work with French telecommunications agency Orange in supporting the corporate’s Max it app in Africa. Within the space of gaming, Tencent’s cloud expertise can enhance “latency,” which is a technical time period for the lag between a participant’s actions and what occurs on display, Tong stated.
The Chinese language firm can be betting on European firms choosing a number of cloud suppliers for companies, as a substitute of counting on one or two of the large gamers.
“I might say that is really a … deliberate technique of ours to make the shoppers really feel extra comfy utilizing our expertise, particularly in a multi-cloud atmosphere,” he stated, including that prospects need to have the ability to interoperate.
AI push
Cloud computing firms have put an elevated deal with promoting synthetic intelligence instruments as a option to enhance income and differentiate their choices from rivals.
Tencent has constructed up its personal synthetic intelligence foundational mannequin in China referred to as Hunyuan. But it surely additionally makes use of some fashions created by Chinese language agency DeepSeek in its merchandise.
Tong stated Tencent would take the same method in Europe in the case of AI, probably providing merchandise constructed on European fashions.
“Our focus could be offering instruments that might work with completely different basis fashions and finally, it is the buyer’s determination which mannequin works finest for them,” Tong informed CNBC.
“So I feel on the finish of the day, we’d at all times go to our prospects, discover the issues they needed addressed, present them instruments in order that they will accomplish what they want, and realise the fee effectivity that we will provide.”
