Tencent’s [0700:HK] Cloud and Smart Industry Group (CSIG) has announced a new round of organizational restructuring, as reported by Caixin on May 15. In this restructuring, Tang Daosheng will be reassigned from President of CSIG to CEO, while Qiu Yuepeng, President of Tencent Cloud, will become COO of CSIG. In addition to Tencent Cloud, Qiu will be responsible for sales, product quality, and operations management of CSIG, reporting directly to Tang Daosheng. In addition, CSIG will set up a regional business department as well as a business operation management unit.
Two industry insiders disclosed that this adjustment is due to the fact that Tencent Cloud's performance in 2020 did not meet expectations, and the cloud service provider has been under competitive pressure from Huawei Cloud. The revenue growth rate of Huawei Cloud reached 168% in 2020, and it is catching up with Tencent Cloud by an 11% market share in China's cloud computing industry in 4Q20. This adjustment is the fourth major restructuring in Tencent's enterprise business since the establishment of CSIG on September 30 in 2018. Notably, Tencent's entry into the public cloud was in 2013, while Huawei only started developing its public cloud business in 2017 and surpassed Tencent Cloud in the domestic market within four years.