ZStack Ranks First Among Independent Cloud Vendors in China’s Cloud System Software Market

In June 2025, global IT market research and consulting firm IDC released the IDC PRC Cloud System Software Overview and Analysis 2024H2/2024. The report shows that in the second half of 2024, the overall market size of China’s cloud system software reached $460 million (USD), representing a year-on-year growth of 10.8%. ZStack ranked in the TOP 5 by market share. For the full year of 2024, the total market size of China’s cloud system software was $847.7 million (USD), with a year-on-year growth of 11.1%. ZStack maintained its position as the number one independent cloud vendor and continued to experience rapid growth, with its year-on-year growth rate ranking second.

IDC defines the cloud system software market as a component of the Software-Defined Compute software market. This market primarily includes three sub-markets: virtualization software, cloud system software (software that orchestrates and controls abstracted server resources to build cloud infrastructure), and container infrastructure software (including container engines, orchestration systems, and registries). These technologies form the software-defined compute platform that supports both traditional applications and cloud-native applications, making them essential and foundational software for building cloud computing platforms. IDC defines the cloud system software market size based on license, subscription, and maintenance revenue for cloud system software.

In 2024, the cloud system software market in China continued to experience double-digit year-on-year growth. IDC identifies several key market drivers: the demand for heterogeneous computing infrastructure and the preference for local suppliers, the digital transformation of traditional vertical industries, new technology and scenario demands based on cloud infrastructure (such as artificial intelligence, IoT, and edge computing), as well as the emergence of generative AI and foundational models, which will bring new opportunities for SDC software. Cloud-native infrastructure has also gained wide acceptance.

IDC notes that ZStack continues to maintain double-digit growth rates. Building upon its cloud platform, ZStack offers solutions including virtualization, containers, and AI intelligent computing platforms, thereby expanding its business scope and customer base. Currently, ZStack collaborates with over 300 active partners and supports the digital transformation of more than 4,000 enterprise users across key industries such as government, finance, oil and gas, electricity, telecommunications, transportation, aerospace, healthcare, education, and manufacturing.

ZStack entered the cloud infrastructure software market with a product-oriented approach, launching a self-developed architecture with fully independent intellectual property rights in its cloud operating system. The product portfolio comprehensively covers intelligent computing center software infrastructure, including virtualization, cloud platforms, container cloud platforms, distributed storage, hyper-convergence, multi-cloud management platforms, database cloud platforms, and AI infrastructure platforms. Notably, on February 2nd this year, the AI Infra platform—ZStack AIOS—was launched, supporting three models: DeepSeek V3/R1/Janus Pro. Then, on March 3rd, ZStack AIOS AI Integrated Machine DeepSeek Edition was released, which can be privately deployed based on various CPUs/GPUs such as Hygon, Ascend, NVIDIA, and Intel, meeting enterprise demands for local privatized deployments of DeepSeek.

ZStack has officially launched its Globalization 2.0 Strategy, building upon the Global Market 1.0 phase where it served over 30 countries and regions. It is using the Asia-Pacific region as a strategic gateway to deepen international partnerships, focus resources, and continue to increase market penetration in the Asia-Pacific region, with the goal of becoming a global leader in intelligent computing platforms. In the future, ZStack will continue to increase R&D investment and deepen its focus on AI Infra, ecosystem adaptation, and industry-specific solutions to provide more efficient and stable intelligent computing infrastructure across various industries in the age of intelligent computing.