NetEase to shut down public cloud service as AI boom intensifies competition
The Hangzhou-based company on Friday informed its corporate clients that its public cloud service would be taken offline on April 7, citing a “business strategy adjustment”. Clients with unused credits in their accounts are eligible for a refund upon request, according to a message seen by the South China Morning Post.
A customer service representative confirmed the information, urging existing customers to migrate to other cloud platforms before the service ceases operations. The service’s domain, 163yun.com, now redirects visitors to NetEase’s big data solution business, Shufan.
A NetEase representative said on Friday that the service was used by only a small number of mainland Chinese customers. “We have arranged a dedicated team to communicate with existing users to mitigate the impact on them.”
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The surprise move highlights the fierce competition in China’s public cloud market, where state-backed telecommunications network operators are jostling with major tech companies to attract clients. Providers had been striving to capitalise on a national push for AI to fuel growth, said Ivan Lam, a senior analyst at consultancy Counterpoint.
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