China Cloud Computing

China Cloud Computing

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 China Cloud Computing

The future of ICT industry lies in emerging economies, which are playing an increasingly significant role
within the global economy.

Cloud computing has emerged as an important ICT (information and communication technology)
innovation that could potentially revolutionize the way computing resources are consumed and provided.
In emerging economies, such innovation is regarded as the new way to provide information infrastructure
that has the potential for further economic upgrading.

The world has witnessed the tremendous economic growth of China in recent decades, which has been
given impetus by a series of changes in various aspects of the social and regulative systems, since the
“reform and openness” policy implemented in the late 1970s. Impressive development of the ICT industry
in China has been one of the major forces to transform China into a “knowledge-based” society. So the
development of ICT sector has been given highest priority by the Chinese government in an effort to
modernize the country.

Cloud computing represents a convergence of two major trends in information technology, which are IT
efficiency and business agility. China’s cloud computing market was worth $1.5 billion in 2013 and the
overall cloud computing value chain is expected to grow to 20 billion by 2020 with CAGR of 40%.

As per NIST, Cloud computing is a model for enabling convenient, on-demand network access to a
shared pool of configurable computing resources (for example, networks, servers, storage, applications,
and services) that can be rapidly provisioned and released with minimal management effort or service-
provider interaction.

Key Benefits

 Market capital investment for IT Infrastructure

 On-demand network access and resource sharing
 Scalability & Elasticity
 Opportunity for Innovation
Conclusion
 Over the last 8 – 9 years, cloud computing in China has evolved from a concept by few MNCs
like IBM, Microsoft to a primitive ecosystem that involves strong domestic players along MNCs
through local tie-ups
 Strong involvement and drive by government along with domestic enterprise paved the way for
the growth of cloud infrastructure and services
 Through the case study it is established that the effective growth of an emerging ICT innovation
needs a locally situated government–business partnership to explore the market demand and deal
with the risks.
 In future, it would be nice to compare the cloud computing development in China with the
process in developed countries, to investigate further contextual differences in the emergence of
new markets and technological ecosystems.

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 China Cloud Computing

Reference
Image - https://www.emc.com/content/dam/uwaem/production-design-assets/en/Cloud/hybrid-cloud-computing/assets/what-is-
cloud-computing-l-5v2.jpg

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