Recently, Mobvista announced it had merged the Elastic Cloud Computing and Engineering Operations and Maintenance Team into a more comprehensive Cloud Business Unit, which now ranks as the Company’s second largest business unit after the Advertising Technology Unit. Chao Cai, Vice President of Technology and Chief Engineering Architect of Mobvista, was appointed as the Head of the Cloud Business Unit and will directly report to Clement Cao, Co-founder and President of Mobvista.
Mobvista’s programmatic advertising business has continued to perform. According to the H1 2020 financial report, Mobvista generated 191.9 million USD in revenue from programmatic advertising, up by 51.4% compared with the same period of 2019 and accounted for 71.9% of the total revenue of the Company in H1 2020. The positioning of the Cloud Business Unit as the second largest business unit after the Advertising Technology Unit demonstrates the Company’s intentions to break into the cloud computing service market.
The Mobvista infrastructure has been cloud-based from day one. By acquiring cloud computing resources on-demand, Mobvista is no longer restrained by such resources, thus realizing sustainable business growth. The rapid development of the programmatic advertising business has also resulted in a surge of cloud computing costs. As a result, Mobvista is set to engineer an upgraded system architecture and pioneer an elastic resource management solution for different charging models of cloud computing resources, which makes full use of inexpensive cloud computing resources while taking into account the availability. This solution will reduce the processing cost of the Company’s own programmatic ads by more than 65%. Going forward Mobvista will also strategically parlay this into a commercialized solution to serve external enterprises.
“The establishment of the Cloud Business Unit proves our ability to commercialize our internal technology. In fact, there are precedents in the industry. For example, AWS, which originated from Amazon, started by serving the front end of Amazon’s e-commerce business and gradually began offering services to external customers; It has now developed into a leader in the cloud computing service market. While Migrating to the cloud is a step in the right direction, it does not guarantee high-quality cloud computing resources. Cloud computing costs will definitely be a stumbling block on an enterprise’s digital transformation journey and Mobvista hopes to help more partners utilize cloud computing resources through our technology and practical experience,” said Chao Cai, the Head of the Cloud Business Unit.
Currently, the flagship product of Mobvista’s Cloud Business Unit is SpotMax, which aims to achieve maximum optimization of cloud computing costs for enterprises. SpotMax is currently being commercialized and formed partnerships with Alibaba Cloud and AWS, two major cloud vendors in the global market. Mobvista has successfully utilized SpotMax to reduce its internal costs and assisted enterprises such as Digital Union to lower cloud computing costs by over 65%.
Developers have adopted the “cloud-native” technology architecture in the initial R&D stage of SpotMax. Chao Cai noted, “Cloud-native technology enables engineers to easily make frequent and predictable changes to the system and to accumulate more experiences and practices when exploring cloud computing.. SpotMax’s current capabilities of tackling problems of migrating to the cloud and using cloud computing resources completely derive from the experience of those explorations.” At present, “cloud-native” platforms are extremely popular in the capital market. Snowflake, a cloud computing company recently invested in by Warren Buffett, has seen its market value exceed over 70 billion USD. We believe that SpotMax, which is empowered by “cloud-native” technology, also has a promising future.
According to the predictions of CAICT and Gartner, the scale of the global cloud computing industry and the size of the industry in China will reach 350 billion USD and 380 billion RMB respectively by 2023. With more enterprises migrating their core technologies to the internet, the demand for technologies and services related to cloud computing will be increasingly prominent. However, according to a research report by RightScale, a professional consulting firm, today’s enterprise users waste as much as 30%-45% of their spend on cloud computing resources.