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Investments and government initiatives driving cloud computing in China

Press release August 21, 2014 Cloud computing china, chinese cloud computing

Cloud Computing Market in China 2014 captures the current scenario of the Cloud Computing Market in China.

Government initiatives and investments, coupled with major foreign players entering into strategic partnerships with domestic vendors, are propelling the cloud market in China. Additionally, dramatic cost reduction along with increased speed and flexibility and widespread use of the Internet are helping the Cloud industry to grow significantly. As the Cloud market in China is still in the growth stage, major foreign players like IBM and Microsoft are aiming to capture a lion’s share of the market.

This report, Cloud Computing Market in China 2014, captures the current scenario of the Cloud computing market in China. It also provides an overview of the direct-investment scenario of major domestic companies and government initiatives.

Market overview

Increased investment by the Chinese government and increased inflow of Cloud-related venture capital funds are further contributing to the growth of this industry. The Chinese government’s 12th five-year plan includes investing significantly in creating new cloud platforms, and building and deployment of Cloud datacenters across the country. China has jumped on the Cloud-computing bandwagon as it makes way for huge developments in Cloud computing aimed at servicing government and industry needs. In most cases, China is also looking to boost its own complete data center supply chain with regional hubs creating local product and service-delivery methods.

China’s Cloud computing market, however, is faced with many challenges. Concerns for data sovereignty and privacy, Cloud reliability and after-sales service, bandwidth issue, among others are preventing Chinese users from using Cloud services more widely. Currently, the market size of the Cloud industry in China is around 3% of the global Cloud market.

The cloud computing industry has sensed the need for mobile cloud owing to the rapid growth of mobile devices applications in China. Also, the industry is witnessing a shift in trend towards hybrid Cloud which combines the benefits of both public and private Cloud. Though China’s market is lagging behind that of the US and the UK, the future of Cloud computing in China looks good as the government is working hard on product and service innovations, data security and privacy protection and encouraging more customers to use Cloud services.

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Cloud computing china, chinese cloud computing