Tencent Cloud To Take On Big Three With WeChat's Integrated Super App Ecosystem

Tencent will leverage its WeChat super-app ecosystem to rival industry leaders Amazon, Google and Microsoft in cloud computing space by offering a unique, integrated cloud experience, Tencent Cloud CEO Dowson Tong said.

In an exclusive interview with CNBC at the Singapore Fintech Festival, Tong said that the company aims to allow users to fulfill their dreams of creating super apps by providing insights into its operational expertise gained from building the WeChat framework.

A super app is a comprehensive mobile or web-based platform providing multiple offerings — from messaging to payment transactions to ordering food, among other services.

"That's something that makes us stand out, compared to many [other] online platforms," Tong said. According to Synergy Research Group, Microsoft Azure, Amazon Web Services and Google Cloud Platform are the three largest cloud service providers, making up 68% of the market share as of the second quarter of this year.

While the dominant market players control 68% of the market they lack the all-in-one functionality that WeChat thrives on, according to Windows forum discussion.

Tong added that Tencent Cloud's clients are increasingly leaning on its cloud infrastructure to build scalable super app platforms. He said that many users aim to develop mini-programs on WeChat's network and integrate their services seamlessly.

"Many of our enterprise customers ... they want to borrow some of the technologies that make our consumer services successful. They also want to leverage our capability to connect to users," Tong said.

The mini-programs built within WeChat ecosystems typically allow businesses to establish a solid digital presence by tapping into its vast user base. Through its newest venture, Tencent will instill a forward-thinking approach in the users who lately relied on other cloud service providers, like Microsoft Azure, Amazon Web Services, and Google Cloud Platform.

Tencent is making the bold move as WeChat with 1.3 billion users can chat, make payments, and avail of other features under one platform-- a cutting-edge integrated ecosystem that provides Tencent a distinct competitive edge over Amazon, Google, and Microsoft. The Big Three offers multiple services but lacks a single app integrating these services.

Wei Sun, Principal Analyst at Counterpoint Research, however, says that while Tencent's super app ecosystem is unique, it's not the sole cloud computing game-changer.

"In the cloud industry, super apps aren't central to service offerings. Cloud clients prioritize infrastructure reliability, scalability, security, and compliance over integrated consumer-facing applications," said Sun.