As one of the most mature markets in Asia, Japan's cloud computing market is in the ascendant. According to IDC, the market size of cloud computing in Japan reached 30 billion US dollars in 2021, a year-on-year increase of 34.7%. In the next five years, this figure will increase to 2.5 times.
As a pioneer of cloud computing service providers going overseas, Alibaba Cloud began its deployment in the Japanese market in 2016, and established two data centers in 2016 and 2019, providing basic cloud resources such as computing power, storage, and databases, as well as AI algorithm services for many customers including Japan's top gaming Internet companies.
In December, 2022, Alibaba Cloud officially launched its third data center in Japan to form a more reliable and highly flexible 3AZ availability zone to meet the rapidly growing business needs of the Japanese market.
Today, many Japanese companies have completed the transfer from traditional IT architecture to cloud computing platforms, and are actively trying big data analysis and AI technologies to improve business efficiency. How to provide real value to customers in the Japanese market with high standard demand and pursuit of ultimate? Ever since I set foot on the land of Japan, I have been thinking about this question.
Japan is a traditional Internet power. As one of the means of the Business Continuity Plan, many companies started to use cloud computing services more than ten years ago to ensure that their business can run stably even when natural disasters such as earthquakes happen. With the expansion of business and increasingly fierce competition in the industry, customers in the gaming Internet industry urgently need higher-quality cloud services to reduce the burden on engineers in infrastructure construction, operation and maintenance under the premise of achieving stable business operation.
Enish, a listed gaming company, adopted Alibaba Cloud's cloud-native database PolarDB and container technology to ensure massive access during the game's launch. While providing players with a smoother experience, it saves more than 30% of cloud service usage and operation and maintenance costs.
Preferred Networks, Japan's largest artificial intelligence company, has greatly improved the GPU usage efficiency required for AI service development through Alibaba Cloud's unique cGPU technology. We also provide 7*24-hour exclusive TAM (Technical Account Manager) service with a response speed much faster than that of our competitors, to escort the service launch of Japanese customers.
On the other hand, we are also actively using Alibaba's technical capabilities in the fields of big data and AI algorithms to help solve some challenges faced by Japanese companies and society.
For example, through cooperation with the Japanese Internet company M3, Alibaba Cloud has used the medical image analysis technology of Alibaba DAMO Academy to help more than 200 hospitals in Japan obtain preliminary diagnosis results within 20 seconds, greatly reducing the burden on doctors.
In addition, our license plate privacy protection AI has helped IDOM, Japan's largest used car group, realize business process automation with an accuracy of over 95%, reducing personnel costs by 90%. As a case of cooperation between Chinese and Japanese Internet companies, it has attracted the attention of NHK, Nihon Keizai Shimbun and Yahoo Japanese media many times.
Like in other countries, the epidemic is accelerating the digital transformation of traditional offline industries such as retail in Japan. In the future, we will further combine Alibaba Cloud's ecological advantages in China with the experience of serving the Japanese local market, and cooperate with local partners to further create one-stop solutions such as electronic price tags that meet the needs of the local market, and make greater contribution to the digital transformation of traditional industries.
Uniqle Song, General Manager of Japan and South Korea, Alibaba Cloud Intelligence.
Uniqle Song has more than 15 years of global working experience in IT and cloud computing. Joining Alibaba Cloud in 2014, he was an initial member of Alibaba Cloud's internationalization, responsible for the global partner and channel system construction, and then built Alibaba Cloud's Japanese business from scratch. Relying on his keen business sense and profound business insights, he focused Alibaba Cloud's business development in Japan on the gaming Internet, and established good cooperative relationships with many local leading companies in this subdivided field.
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