Tencent takes aim at Microsoft and Amazon with expansion of cloud business in Japan

Beijing – A division of Chinese internet services giant Tencent Holdings Ltd. will expand the scope of its cloud business in Japan by the end of this year, a senior executive said Tuesday.

By utilizing its state-of-the-art technology in the automobile and electronics fields, Tencent, which has provided cloud services in Japan since last year, will aim to triple its sales in 2020 from the current level, the executive added.

Cloud computing enables transmission and storage of large amounts of information and data through the internet. Tencent has so far concentrated mainly on collaborating with Japanese game-related enterprises in the cloud sector.

In Japan, U.S. IT firms such as Amazon.com Inc. and Microsoft Corp. have a strong position in the cloud market. Tencent’s latest target is expected to intensify competition among them, economists say.

“In addition to the game business, we will strengthen services” for such fields as video distribution and manufacturing this year, said Zhao Jiannan, managing director of Tencent Cloud for Northeast Asia.

While declining to mention a specific name, Zhao said Tencent is likely to work with a major Japanese carmaker later this year, adding it will offer support on tapping into the Chinese market to Japanese firms that use cloud computing.

Zhao said Tencent and Japanese automakers can work in tandem to promote safety technologies and “connected cars” equipped with advanced telecommunication systems.

He also said that in the electronics area, Tencent will contribute to the creation of next-generation factories, where minor defects in the manufacturing process can be detected using artificial intelligence.

“We want to develop together in the fields where Japan leads the world, including games, cars and medical services,” Zhao said.