Canalys recently published its first Mainland China Cloud Channel Leadership Matrix, adding to the series of Leadership Matrix reports designed to highlight leading vendors in key areas of the cloud channel ecosystem in Mainland China. The three vendors, Alibaba Cloud, Huawei Cloud and AWS, stood out among the competition for their impressive achievements both in the market and across the partner ecosystem, earning them Champion status in recognition of their industry-leading efforts.

Defining Champions and vendor inclusion in the Canalys Mainland China Cloud Channel Leadership Matrix

A vendor’s position in the Canalys Mainland China Cloud Channel Leadership Matrix is based on channel partner feedback, industry leadership in the Chinese cloud market and Canalys analyst assessments. Champions have demonstrated the highest levels of excellence in driving the channel ecosystem forward in the cloud over the last 12 months with their industry peers, while also progressing on their own corporate business strategies.

Canalys assessed the seven leading cloud vendors in Mainland China and eligibility for the evaluation was contingent on meeting predetermined annual revenue criteria. Besides the three Champions, other vendors were classified as Contenders (with strength in industry leadership and channel strategies), Scalers (with lower leadership, but strong momentum to drive the industry forward) or Foundation (vendors that fall behind in supporting partners with advancing their partner programs).

Vendors must continue leading the industry toward a future of mutual success with the channel ecosystem

In contrast to regions with more extensive cloud adoption, the development of Mainland China's cloud channel market is still in its early stages. The market lacks a well-defined understanding of partner roles and responsibilities, with some vendors maintaining a traditional perspective that predominantly looks at partners as intermediaries engaged in pure resell or distribution.

Considering the challenges faced by Mainland China's cloud service market in acquiring new customers, leading cloud vendors have recognized the increasing importance of a channel ecosystem. It is worth noting that there have been substantial shifts in customer demand within the Chinese cloud market. Customer segments from internet-related industries reached a saturation point, while those from less digitally mature sectors are showing a stronger interest in tailored cloud migration solutions. The development of a channel ecosystem has now become more crucial than ever, enabling swift and cost-effective approaches to expand customer reach and fulfill ever-changing customer requirements.

The evolving cloud usage and consumption patterns necessitate a shift in how vendors work with the channel. Customers increasingly rely on partners' support in coping with IT complexities and place a growing emphasis on post-sales engagement and service capabilities. This underscored the necessity for vendors to establish a resilient, highly skilled and diverse channel ecosystem. Prioritizing partner satisfaction, building advanced partner programs, rewarding expertise and effectively managing conflicts are crucial during this phase in the evolution of the channel partnership model in Mainland China.

This has set the bar even higher for the Champions. Congratulations to the three vendors, who have been crowned Champions in the 2023 Canalys Mainland China Cloud Channel Leadership Matrix: Alibaba Cloud, Huawei Cloud and AWS.

Looking ahead, the revenue-generating opportunities for the Mainland China cloud channel ecosystem will become increasingly apparent. Partners are clearly expressing their need for self-capacity development and technical support through partner programs. Cloud vendors will need to expand support and training offerings for partners, all the while ensuring partner satisfaction and mutual business growth. As Contenders strive to capture the favor of the burgeoning partner base, the biggest challenge for Champions lies in retaining their leadership positions over the next 12 months.