Chinese tech giant, Tencent is the latest to enter the Indian public cloud services market after its arch-rival Alibaba did some time back with Aliyun. It is entering a little late into a market already dominated by top international players like Amazon web services (AWS)Microsoft AzureGoogle and Digital Ocean. The Indian cloud services market is currently valued at  $1.8billion and is expected to reach a staggering $4.1 billion by 2020. And no cloud company out there is willing to let go of such a large opportunity.

Tencent Holdings Limited is a Chinese multinational investment holding conglomerate whose subsidiaries specialize in various Internet-related services and products, entertainment, artificial intelligence and technology both in China and globally. In April 2017, when Tencent, ploughed $700 million into India’s most valuable Internet start-up Flipkart, it sent out a clear message to the country’s rapidly growing startup and venture capital ecosystem: the Chinese Internet behemoth means business.

With their cloud services, Tencent is introducing two specific solutions to its prospective clients, one is VOD (video on demand) and the other is LVB (live video broadcasting). With its offerings and huge expertise in video gaming, it is aiming to target several homes bred gaming companies in India.

Almost every video and live-streaming startup in India today spends a good chunk of its monthly budget on server costs and mostly they are with AWS,” said a person aware of Tencent’s cloud plans in India. It is in plans of leveraging its startups in developing its own cloud services rather than buying others’ platforms of web services.

After the poor performance of its social media app WeChat here, Tencent is even more cautious in exploring the Indian markets. It is concentrating on niche offerings for the video-based and gaming startups. Its research and analytics team is working to gauge the overall market and target crowd.

Being the world’s largest gaming company, the best move forward for Tencent would be to acquire valuable gaming startups in India and expand their cloud services. A giant like Tencent holdings is highly capable of displacing established players in the cloud market. We have to wait and see what their impact would be.