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 seeking to carry that experience to Europe because it ramps up growth of its cloud enterprise abroad, Dowson Tong, CEO of Tencent’s cloud group instructed CNBC.
“We have now strengths and competence in very particular expertise areas, in addition to business verticals,” Tong mentioned in an interview final week. “These are are very distinctive expertise capabilities which were developed over a few years [and] began from our merchandise in China.”
“So we intend to carry quite a lot of this expertise experience to Europe. We’re speaking to quite a lot of potential prospects.”
Tencent’s European push will pitch it towards 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 concentrate on particular areas the place it has constructed up capabilities to distinguish from rivals.
Tong mentioned these embrace cloud applied sciences for areas like optimizing video streaming, making certain a clean gaming expertise, and creating and internet hosting so-called “tremendous apps” like WeChat — China’s largest messaging service. WeChat is usually seen because the pioneer of tremendous apps, a time period that refers to an software 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 screen, Tong mentioned.
The Chinese language firm can also be betting on European corporations choosing a number of cloud suppliers for companies, as an alternative of counting on one or two of the massive gamers.
“I might say that is truly a … deliberate technique of ours to make the purchasers really feel extra snug utilizing our expertise, particularly in a multi-cloud surroundings,” he mentioned, including that prospects need to have the ability to interoperate.
AI push
Cloud computing corporations have put an elevated concentrate on promoting synthetic intelligence instruments as a method 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. However it additionally makes use of some fashions created by Chinese language agency DeepSeek in its merchandise.
Tong mentioned Tencent would take an analogous method in Europe in the case of AI, probably providing merchandise constructed on European fashions.
“Our focus could be offering instruments that will work with totally different basis fashions and finally, it is the buyer’s determination which mannequin works greatest for them,” Tong instructed CNBC.
“So I feel on the finish of the day, we might all the time 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 associated fee effectivity that we will provide.”
