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  3. Alibaba CEO Wu Yongming: Committed to Two Key Initiatives in the AI Era
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Alibaba CEO Wu Yongming: Committed to Two Key Initiatives in the AI Era

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  • baoshi.raoB Offline
    baoshi.raoB Offline
    baoshi.rao
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    On the morning of the 8th, Alibaba Group CEO Wu Yongming stated at the opening of the 2023 World Internet Conference Wuzhen Summit that as a technology platform company, Alibaba is committed to two key initiatives in the AI era:

    1. Providing a stable and efficient AI foundational service system, particularly robust cloud computing capabilities.
    2. Creating an open and thriving AI ecosystem. According to reports, Alibaba is one of the earliest large tech companies in China to open-source large-scale models and has established and operates China's largest AI model open-source community, 'ModelScope.' Over the past year, the ModelScope community has attracted over 2.8 million AI developers, with model downloads exceeding 100 million.

    With the advent of the internet and large-scale data centers, the sharing of computing resources became possible, leading to the proposal and gradual expansion of the concept of cloud computing. In the development of cloud computing, the industry has been broadly categorized into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) based on the services provided.

    IaaS primarily offers underlying services such as servers and storage networks; PaaS provides platform-oriented services like middleware, operating systems, and runtime environments; SaaS delivers application and data analysis management services.

    Compared to the U.S., China's cloud computing industry started later but is currently in a phase of rapid growth. The U.S. introduced cloud computing concepts as early as 2005, with applications gradually becoming widespread over the next three years due to technological advancements. China, lagging behind the U.S. by about five years, began developing cloud computing in 2007, learning from the U.S. model, with continuous policy support leading to widespread adoption.

    Since 2007, China's cloud computing development has gone through four stages:

    1. Market Introduction Stage: Cloud computing concepts were just emerging in China, with low customer awareness.
    2. Growth Stage: Users became more familiar with cloud computing, and more vendors entered the industry.
    3. Maturity Stage: The competitive landscape among cloud computing vendors was largely formed, with companies focusing on more mature and superior solutions. SaaS models gradually became mainstream.
    4. High-Growth Stage: The overall scale of China's cloud computing market remained relatively small, lagging behind the global market by 3 to 5 years. In particular, the domestic SaaS market lacked leading enterprises.

    In China, the cloud computing market has grown rapidly from an initial size of a few billion to the current hundreds of billions. According to data from the China Academy of Information and Communications Technology, the market size of China's cloud computing industry grew by over 30% annually from 2020 to 2022, showing a high-growth trend.

    In 2022, China's cloud computing market reached 318.91 billion yuan, a year-on-year increase of 33.6%. In the future, driven by the advancement of new infrastructure, the cloud computing industry is expected to enter a golden period of development.

    Cloud Computing Applications:

    1. Cloud Security:
      Cloud Security is a term derived from 'cloud computing.' The strategy behind cloud security is that the more users there are, the safer each user becomes, as the vast user base can cover every corner of the internet. Any malware or new virus can be intercepted immediately.
      Cloud security monitors abnormal software behaviors across a network of clients, gathers the latest information on malware, sends it to servers for automated analysis, and distributes solutions to every client.

    2. Cloud Storage Applications:

    Cloud storage is a concept derived from and developed upon cloud computing. It refers to a system that integrates various types of storage devices across a network through cluster applications, grid technology, or distributed file systems, working collaboratively to provide data storage and business access functions.

    When the core operation of a cloud computing system involves the storage and management of large amounts of data, the system requires extensive storage devices, transforming it into a cloud storage system. Thus, cloud storage is essentially a cloud computing system centered on data storage and management.

    1. Cloud Call Center Applications
      Cloud call centers are systems built on cloud computing technology. Businesses can quickly establish their own call centers without purchasing any software or hardware systems, requiring only basic conditions like personnel and space. The service provider offers the hardware and software platforms, communication resources, and daily maintenance.

    These systems feature short construction cycles, low investment, minimal risk, flexible deployment, scalable capacity, and low operational costs. Whether for telemarketing or customer service, businesses can rent services as needed to establish a comprehensive, stable, and reliable call center system with agents distributed nationwide.

    1. Private Cloud Applications
      Private Cloud (Private Cloud) involves creating cloud infrastructure and software/hardware resources within a firewall, allowing departments within an organization or enterprise to share data center resources. Setting up a private cloud typically requires cloud infrastructure (IaaS) software in addition to hardware resources. Commercial solutions include VMware's vSphere and Platform Computing's ISF, while open-source options include Eucalyptus and OpenStack.

    Private cloud computing also includes three layers: cloud hardware, cloud platform, and cloud services. The difference is that the cloud hardware consists of the user's own PCs or servers rather than data centers owned by cloud providers.

    Cloud providers build data centers to serve millions with public cloud services, requiring hundreds of thousands of servers. Private clouds, however, serve only individuals (friends and family) or businesses (employees, clients, and suppliers), making personal or enterprise PCs/servers sufficient for providing cloud services.

    1. Cloud Gaming Applications
      Cloud gaming is a gaming model based on cloud computing, where all games run on servers, with rendered game screens compressed and transmitted to users via the internet.

    On the client side, users' gaming devices don’t need high-end processors or graphics cards—only basic video decompression capabilities. Currently, cloud gaming hasn’t become the standard for home and handheld consoles, as Xbox 360 uses LIVE, PlayStation uses PSN, and Wii uses Wi-Fi. However, in the coming years, cloud computing could very well become the ultimate direction for network development in gaming.

    If this vision becomes reality, console manufacturers would transition into network operators, eliminating the need for massive investments in new console R&D. Instead, they could allocate a fraction of those funds to upgrade servers while delivering comparable performance. Users would save on console costs while enjoying top-tier gaming visuals (assuming robust video output hardware).

    Imagine a handheld console with graphics matching a home console, or a home console as simple as today's set-top boxes—even replacing them to become the next-generation TV viewing platform.

    1. Cloud Education Applications

    Video Cloud Computing Application in the Education Industry:

    Streaming platforms in education employ a distributed architecture, consisting of web servers, database servers, live broadcast servers, and streaming servers. If necessary, a collection workstation can be set up in the information center to establish network TV or live broadcast applications. Classrooms equipped with recording or live broadcast systems in various schools can be configured with streaming media components, allowing recorded content to be transmitted in real-time to the global live broadcast server at the streaming platform management center. Additionally, recorded content can be uploaded and stored on the streaming storage server at the information center for future retrieval, on-demand viewing, evaluation, and other applications.

    7. Cloud Meeting Applications

    Cloud meetings are an efficient, convenient, and low-cost form of conferencing based on cloud computing technology. Users only need to perform simple operations via an internet interface to quickly and efficiently share audio, data files, and video with teams and clients worldwide. The complex technical aspects of data transmission and processing during meetings are handled by the cloud meeting service provider.

    Currently, domestic cloud meetings primarily focus on SAAS (Software as a Service) models, including telephone, network, and video services. Video conferencing based on cloud computing is referred to as cloud meetings, which combine video conferencing and cloud computing to deliver the most convenient remote meeting experience.

    Timely Language Mobile Cloud Teleconferencing is a perfect integration of cloud computing and mobile internet technologies, enabling efficient meeting organization and management anytime, anywhere through simple operations on mobile devices.

    8. Cloud Social Applications

    Cloud Social (Cloud Social) is a virtual social application model that integrates IoT, cloud computing, and mobile internet interactions. Its goal is to establish a well-known "resource-sharing relationship graph" to facilitate online social interactions. The main feature of cloud social is the unified integration and evaluation of vast social resources, forming an effective resource pool to provide on-demand services to users. The more users participate in sharing, the greater the value created.

    China Cloud Computing Market In-Depth Analysis Report

    Currently, computing power is transitioning from "passive" development driven by terminal computing demands to "active" development aimed at promoting AI model training, achieving general artificial intelligence, and surpassing classical computing. New hardware and architectures are emerging, potentially overturning existing chips, operating systems, and application software, heralding a new era of computing.

    From an application perspective, as China's cloud computing technology ecosystem matures, the pace of cloud adoption by enterprises and governments is accelerating. The China Cloud Computing Industry Development White Paper predicts that by 2023, China's cloud computing industry will exceed 300 billion RMB, with over 60% of government and enterprise cloud adoption rates. Fully autonomous computing platforms will become the mainstream IT infrastructure for governments and large enterprises.

    Servers, storage, computing resources, and security are key components of cloud infrastructure. As cloud computing enters a new phase, tech giants like Lenovo are accelerating their comprehensive and multi-dimensional deployment in the cloud services market.

    Future Cloud Computing Market Outlook

    Preliminary estimates suggest that by 2025, the combined market size of data centers, cloud computing, and artificial intelligence will exceed 2.5 trillion RMB. China's core computing industry is expected to reach no less than 4.4 trillion RMB, with associated industries potentially hitting 24 trillion RMB. Computing power is poised to emerge as another super sector in the national digital economy, following electronic information manufacturing and software industries.

    During the 2022-2027 forecast period, cloud infrastructure spending is projected to grow at a compound annual growth rate (CAGR) of 11.2%, reaching $153 billion by 2027 and accounting for 69.0% of total computing and storage infrastructure spending. Shared cloud infrastructure will comprise 72.0% of total cloud spending, with a CAGR of 11.9%, reaching $110.1 billion by 2027.

    Dedicated cloud infrastructure spending will grow at a CAGR of 9.6%, reaching $42.9 billion. Non-cloud infrastructure spending will grow at a CAGR of 1.3%, reaching $68.6 billion by 2027. Enterprise spending on computing and storage infrastructure is expected to grow at a CAGR of 10.6%, reaching $148.2 billion by 2027.

    Cloud Computing Development Prospects:

    1. Multi-cloud, cloud ecosystems, and diversification are inevitable trends in the future of cloud computing.

      From a market competition perspective, the implementation of cloud computing across the IaaS, PaaS, and SaaS layers cannot be entirely handled by a single provider. Different vendors have their own comparative advantages at each level. Only through collaboration and the establishment of a cloud computing industry ecosystem can cloud computing overcome barriers across different layers and meet varying levels of customer service demands.

      From the perspective of enterprise IT infrastructure needs, as cloud and internet-based IT infrastructure become more prevalent, industry clients—especially large enterprises—will increasingly enhance their software development capabilities to gain greater control over their IT systems. They will also distribute their applications across multiple public cloud service providers.

      Additionally, the cloud services used by enterprise clients will continue to integrate with their existing IT architectures. Many enterprises will still rely on traditional IT infrastructure to some extent. With the long-term coexistence of hybrid models, clients will not be locked into a single public cloud platform, making cross-platform management the next major demand area.

    2. Hybrid cloud will become the primary deployment model for cloud computing in China.

    A hybrid cloud combines public and private clouds and is increasingly adopted as a popular commercial cloud solution. Public clouds are favored for their cost-effectiveness but have shortcomings in data security and autonomy. Private clouds ensure data security and control but lack the scalability and flexibility of public clouds. Hybrid clouds offer the best of both worlds, providing the security of private clouds and the openness of public clouds.

    Hybrid clouds allow enterprises to deploy high-security applications on local cloud platforms while leveraging flexible public cloud services for elastic computing needs. This approach addresses the limitations of both public and private clouds, such as control issues with public clouds and the cost inefficiency and limited scalability of private clouds. Users seek integrated solutions, and hybrid clouds balance the flexibility and openness of public clouds with the control of private clouds, making them a dominant deployment model in the future.

    3. Data explosion drives massive storage demand, highlighting the importance of composite storage solutions.

    In the era of intelligent internet, data is growing exponentially. Managing and storing vast amounts of data is a major challenge for many enterprises. With the increasing demand for computing and storage resources from emerging applications like AI, as well as the rapid growth in data storage needs from e-commerce, gaming, video streaming, and online education, the proportion of storage services in China's IaaS market will continue to rise.

    Cloud computing industry research reports aim to forecast market prospects based on national economic and industrial development strategies, helping clients navigate policy uncertainties and identify investment opportunities. These reports analyze and predict industry trends, offering strategic insights for businesses to gain a competitive edge in a dynamic market.

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