Taking China Telecom as a case study, this paper analyzes the development logic and effects of its “second curve” business under the strategy of “Cloudification and Digital Transformation.” The study finds that the evolution of this business is the result of the combined effects of endogenous performance pressure, external institutional guidance, and technological paradigm shifts. In terms of value creation, the second curve business has altered the enterprise’s operational characteristics: financially, the increased proportion of industrial digitalization revenue has optimized the revenue structure and cash flow status; operationally, the application of technologies such as AI has reduced marginal costs and improved resource allocation efficiency; and in governance, the security architecture of cloud-network integration has enhanced the enterprise’s risk defense capabilities. The study indicates that large state-owned enterprises can achieve business transformation through strategic response and resource restructuring, providing a reference for the digital development of traditional industries.