China’s Kingsoft sees strong growth in cloud computing from Xiaomi link

Chinese software company Kingsoft expects sustained growth in its cloud computing and storage businesses as it begins to serve Xiaomi’s rapidly growing overseas users this year, its chief executive said.

The Zhuhai-based, Hong Kong-listed firm also hopes to diversify beyond Xiaomi, which made up most of Kingsoft’s revenue last year, as it gains new customers in the rapidly growing Chinese market for cloud services.

“It is quite fortunate that Xiaomi is a close partner of ours, given how its user base and activity have grown very quickly,” said Zhang Hongjiang, who is also chief executive of the firm’s cloud unit Kingsoft Cloud.

“And it will continue to grow as long as Xiaomi grows. People are just using their phones a lot more, and are taking a lot more pictures than before,” he said.

Cloud computing in China has taken off since the government set it as a major policy goal in a development plan unveiled in 2012. According to research by foreign investment consultants Dezan Shira, the market was worth 117.41 billion yuan (US$19 billion) last year, nearly double the previous year. 

The government has also said it will support the industry through tax policies, law and regulations, and will encourage investment in cloud computing start-ups, the China Daily newspaper reported in January.