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Cloud Computing In China Looks Set To Soar

Cloud Computing In China Looks Set To Soar

China is notorious for being a closed market, however, as the largest single market in Asia it could prove to be the game changer necessary to tip the scales of Cloud Computing adoption (at least in Asia). While we all know that a single grain of rice can tip the scales, China’s expanding Cloud Computing market is rapidly growing out of the boundaries set by the country’s Great Firewall of China. Everything looks set to be in place enough that China may be the game changer for your cloud enterprise or startup as well.

Late last year IDC predicted a number of things in relation to Cloud Computing in China.

This included:

  • Emerging markets (which includes China) will continue to have an oversized impact on global IT growth. While these markets will account for 28% of worldwide IT spending in 2012 – up from 21% five years ago – they will actually drive 53% of all IT spending growth worldwide.
  • China will pass Japan as the #2 IT market. China will continue to have the largest share (28%) of emerging markets spending and will see that spending grow almost 20% in 2012, reaching $145 billion. IDC predicts that China will pass Japan as the second-largest IT market sometime in the second half of 2012.

While some may still point to China’s still very visible Great Firewall, pockets of Clouds are rapidly appearing directly through it. In a bid to broach Cloud Computing the Chinese Government has implemented Cloud Computing centers and startup incubators such as the Cloud Valley. The Aldridge Company’s recent MOU with the Shanghai Lingang Economic Development group to bring Chinese companies into the cloud is indicative that more private clouds may soon crop up in China, creating a more Cloud-ready market receptive to similar Cloud-based technologies and startups. Cloud Valley officials have also indicated their readiness to provide IT outsourcing on a more global scale as well, at rock-bottom prices.

Companies such as CloudFlare are already making their mark in China. According to Chunghwa Telecom Vice President, Wen-Show Yang, “You can apply to the Beijing government for permission to set up a direct internet connection. But you need to pay a bit extra.” So if you’re looking to set up shop in China, you won’t have to go through the Great Firewall either. If all goes according to IDC’s predictions, another 6 to 8 months or so may be all the difference it needs to be a part of 2012’s Chinese Water Dragon’s ascent to the Cloud.

By Muz Ismial

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