Tencent bets on WeChat and games will help win the European cloud business


Chinese technology company Tencent is a gaming giant and parent company of WeChat, a ubiquitous social messaging app in China.

Cheng Xin | Getty Images News | Getty Images

Tencent The gaming and social media giants in China have spent years and have built cloud computing power in the process.

The technology company is now seeking to expand this expertise to expand its cloud business overseas, Dowson Tong, CEO of Tencent Cloud Group, told CNBC.

“We have advantages and capabilities in very specific technology areas and verticals of the industry,” Tong said in an interview last week. “These are very unique technical capabilities that have been developing for many years and start with our products in China.”

“So we intend to bring a lot of technical expertise to Europe. We are talking to many interested prospects.”

Tencent’s European push to compete with the United States on a large scale Amazon,,,,, Microsoft and letter-Owned Google accounts for 70% of the European cloud market.

However, the Chinese company wants to focus on specific areas of building capabilities that distinguish them from competitors.

These include cloud technologies targeting areas such as optimizing video streaming, ensuring a smooth gaming experience, and developing and hosting so-called “super applications”, such as China’s largest messaging service, Tang said. WeChat is often regarded as a pioneer of super applications, the term refers to applications with multiple features, such as messaging and payment.

Tong gave examples of the cloud computing work of Tencent and French telecommunications companies orange Supporting the company maximum Application in Africa. Tong said that in the gaming space, Tencent’s cloud technology can improve the “launch period”, a technical term for lagging between player action and what’s happening on the screen.

The Chinese company also bets on multiple cloud providers that European companies choose to serve rather than relying on one or two big players.

“What I want to say is that it is actually…our strategy to make customers more comfortable using our technology, especially in a multi-cloud environment,” he said, adding that customers want to be able to interoperate.

You have a push

Cloud computing companies have focused more and more on selling AI tools to boost revenue and distinguish their products from competitors.

Tencent has established its own basic artificial intelligence model in China, called Hunyuan. But it also uses some models created in its products by Chinese company DeepSeek.

Tong said Tencent would take a similar approach in terms of AI, which could offer products based on European models.

“Our focus is on providing tools to work with different basic models, and ultimately, the client’s decision is best for them,” Tong told CNBC.

“So, I think at the end of the day, we’re going to always turn to our customers to find the problems they want to solve, give them tools so they can do the work they need and be aware of the cost-efficiency we can provide.”



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *