China’s internet sector is growing by leaps and bounds when users, traffic and the contribution of online services to the country’s economy are considered. This is due in part to demand for services offered by Baidu, Alibaba and Tencent – China’s three largest internet companies – who have rapidly grown their respective hyperscale business ecosystems in order to capitalize on the fast-growing market for internet services. The companies have done so by virtue of acquisitions and investment in order to capture higher spending by Chinese online consumers.
The potential of China’s internet sector has left Baidu, Alibaba and Tencent (a.k.a. BAT) jockeying for the best possible market position. This will lead to new demands on their data centers. To provide the necessary support, Baidu, Alibaba and Tencent have engaged in the development of advanced data center facilities. As such, the companies have become data center construction and operational best practices pioneers. This makes BAT important and noteworthy examples for other online businesses to follow.
Key questions answered in the document are:
- What type of companies have Baidu, Alibaba and Tencent invested in most?
- What is the share of Baidu, Alibaba Tencent in e-commerce, search engines, social, gaming other high-demand internet services categories in China?
- How have Baidu, Alibaba and Tencent capitalised on the mobile internet opportunities in China to date?
- How are BAT evolving their internet ecosystems to capture revenue from China’s booming online services sector?
- How have Baidu, Alibaba Tencent evolved data center strategies to plan for expected high demand for its services?
- What are the strengths, weaknesses, opportunities and threats for each company?