SFF 2024 | AI and Cloud - Powering the Economies of Tomorrow

Summary

In this interview, the speaker discusses the evolving nature of cloud technology and its integral role in various industries, including gaming, finance, and AI. They share insights on how Tencent’s cloud infrastructure enables efficient and scalable services, especially in China, and its efforts in driving technological innovations. The conversation touches on topics like cloud-native technology, AI integration, multicloud strategies, and future investments in startups. The speaker also highlights Tencent’s commitment to providing resilient cloud services and its role in powering critical sectors like automotive and finance. Additionally, they discuss the potential impact of quantum computing on cloud security.

Takeaways

• 😀 Cloud computing is a misnomer, as it refers to physical infrastructure rather than an abstract concept. The term is stuck due to its historical use, but cloud should refer to the infrastructure that powers it, including private, public, and edge resources.
• 😀 Tencent started as a messaging company in 1998 and grew to become a dominant cloud player by supporting internet services with large-scale infrastructure, initially in China and then globally.
• 😀 Tencent helped WeBank reduce the cost per transaction through cloud-native technology, emphasizing the efficiency of building systems from scratch with cloud-based solutions, unlike legacy systems that are expensive to maintain.
• 😀 Cloud-native technology is the key to cost-efficient and scalable infrastructure, enabling the reduction of operational expenses for businesses like WeBank and other partners.
• 😀 Southeast Asia presents a huge growth area for cloud consumption. Tencent sees opportunities to bring the efficiencies from China’s cloud infrastructure to the region, which could benefit from commoditized hardware and standardized open-source software.
• 😀 Quantum computing could disrupt current encryption methods used in cloud security, but it’s not a general-purpose computing solution. Quantum poses risks to encryption standards, but Tencent is already working on post-quantum security measures.
• 😀 Despite concerns about quantum computing, Tencent does not see it as a major threat to cloud security yet but emphasizes the need to rethink security protocols due to the potential for quantum computers to break encrypted data in the future.
• 😀 Resilience in cloud infrastructure is crucial, and companies should ensure their applications are designed with redundancy across multiple availability zones to maintain service continuity during outages or disasters.
• 😀 A multicloud strategy is recommended for cloud consumers, allowing for risk mitigation by using multiple providers, ensuring that one provider’s failure won’t bring down critical systems. Tencent supports interoperability among various cloud providers.
• 😀 Tencent is committed to investing in physical infrastructure outside China, with 26 availability zones globally, including in Southeast Asia, to meet the growing demand for cloud services, especially in AI and quantum computing fields.
• 😀 Tencent continues to invest in AI and quantum technologies, creating advanced AI applications for both domestic and international markets, including financial institutions, and believes that cloud infrastructure will be a critical foundation for these innovations.
• 😀 Tencent is actively hiring and offers various job opportunities, welcoming top talent to help further expand its cloud services and develop new technologies, while also providing educational resources on cloud and AI technologies for users and developers.

Q & A

Why is the term 'Cloud' considered a misnomer in the context of technology?

The term 'Cloud' is seen as a misnomer because it suggests something intangible in the sky, while in reality, cloud computing refers to infrastructure that is very much grounded and critical, supporting various systems through private, public, and distributed resources. The name has persisted due to long usage, but it does not accurately reflect the physical nature of the technology.

What role did Tencent initially play in the internet service industry, and how did it evolve?

Tencent initially started as a messaging company in 1998, providing internet services such as content, music, video, and games. Over time, it expanded into infrastructure support, offering services to game partners and others, ultimately evolving into a major public cloud provider.

How did Tencent help WeBank achieve such low cost per transaction?

Tencent helped WeBank by providing a cloud-native infrastructure, which is more efficient than legacy banking systems. WeBank leveraged the WeChat platform and cloud-native technology to lower the cost per transaction significantly.

What does 'cloud-native' mean, and why is it important for efficiency?

'Cloud-native' refers to applications designed specifically to leverage cloud environments from the start, using scalable, cost-efficient technologies. It is important because it allows for better resource utilization, flexibility, and overall efficiency compared to legacy systems that were not built for the cloud.

What challenges and opportunities do you see for cloud adoption in Southeast Asia?

Southeast Asia presents both challenges and opportunities. The region is expected to experience significant growth in cloud consumption, with opportunities to apply the technologies Tencent has used in China, such as standardized open-source software and efficient, commoditized hardware. However, regulatory and infrastructure challenges may arise.

As a small business owner, how can Tencent's cloud services help reduce technology costs?

Tencent's cloud services can help small business owners reduce technology costs by providing scalable, efficient infrastructure. Services like video conferencing are free up to a certain limit, and the cloud infrastructure can be optimized to handle business needs without incurring excessive costs.

How does Tencent integrate AI and Cloud computing to support innovations?

Tencent sees cloud as the foundational platform for AI, providing scalable computing power to support data-driven innovations. AI benefits from the vast computing resources available in the cloud, enabling applications like video intelligence and fintech advancements.

Is Tencent prepared for the growing demand for AI computing power, and will further investments be made?

Yes, Tencent is prepared to meet the growing demand for AI computing power and plans to continue investing in expanding computing resources, particularly in China. Additionally, they have established 26 availability zones outside China, including in Singapore.

What is the impact of quantum computing on cloud infrastructure and security?

Quantum computing poses potential risks to current encryption standards, particularly in breaking down large prime numbers used in encryption. However, quantum computing is not a general-purpose replacement for cloud computing. Instead, it requires a shift in how security is handled, and Tencent is already exploring post-quantum encryption standards.

What is Tencent's approach to multicloud strategies and interoperability with other cloud providers?

Tencent supports multicloud strategies, recommending that businesses use services from multiple cloud providers for backup and resilience. They also prioritize interoperability with other cloud vendors, enabling clients to work across different platforms for mission-critical applications.