Chinese Cloud Computing Industry and Market Development Trends ______I

Industry Intelligence Program

Computing Chinese Cloud

Computing Industry and Market Development Trends

Abstract China has become one of the countries in the world enjoying the fast-growing cloud computing development in the recent five years. Chinese cloud computing market value is estimated to have continued to witness unprecedented year-on-year growth in 2013 and is likely to sustain robust growth next year. This report touches on the Chinese market status and industry policy, examining the cloud computing development of ISPs (Internet Service Providers), software and hardware suppliers and data center operators with an aim to foresee future trends of cloud computing in China.

by Emerging Computing & Applications Research Team

Document Code: NARPT13112702 Publication Date: November 2013 Check out MIC on the Internet! http://mic.iii.org.tw/english

NARPT13112702 Chinese Cloud Computing Industry and Market Development Trends ______i

Table of Contents

Page

1...... C hina's Policy for Cloud Computing Development ...... 1

2...... M arket Development and Trends ...... 1

3...... D evelopment and Deployment of Major Players in Cloud Computing...... 4

3.1 ISPs ...... 4

3.2 IT Software Suppliers ...... 4

3.3 Data Center Operators ...... 5

3.4 Data Center Hardware and Software Providers ...... 5

4...... C onclusion ...... 5

Appendix ...... 6

List of Figures

Page

Figure 1 Worldwide Cloud Computing Market Value, 2011 - 2016 ..... 1

Figure 2 Chinese Cloud Computing Market Value, 2010 - 2015 ...... 3

Figure 3 Key Players in the Chinese Cloud Computing Industry Supply Chain ...... 3

Figure 4 SAE Service Platform ...... 4

Figure 5 Structure of YonYou UAP Platform ...... 5

Figure 6 China Mobile's Big Cloud 2.0 Infrastructure ...... 5

Figure 7 Inspur's CSP Platform Structure ...... 5

1. China's Policy for Cloud Computing Development The main pillars of cloud computing policy in China were established by provincial governments. Those governments have begun to set up cloud computing centers in 30 regions or cities across China such as Wuxi, Nanking, Huizhou, Shanghai, Beijing, Hainan, and Inner Mongolia since 2008 in order to revitalize local economy. Looking at the regional development of cloud computing, the industry's supply chain is mainly developed around the Beijing-centered Bohai Economic Rim, cloud-based applications are generated around Shanghai-centered Yangtze River Delta, and manufacturing is mainly clustered around the Guangzhou-centered Pearl River Delta. China's over-investment and over-development of cloud computing centers situated at provincial cities have caused concerns for the industry and China's central government.

2. Market Development and Trends MIC (Market Intelligence & Consulting Institute) estimates that the global IT service market value will top over US$800 billion in 2016, US$44 billion of which will be contributed by cloud computing services. Cloud computing services have three major service models: IaaS (Infrastructure as a Service), PaaS (Platform as a Service) and SaaS (Software as a Service). Worldwide cloud computing market value arrived at approximately US$20.2 billion in 2012 and is estimated to reach US$25.5 billion in 2013, up 26% year-on-year. In 2016, the market value is predicted to grow 2.8 fold to US$44.5 billion, with a 22.6% CAGR (Compound Average Growth Rate) over a five-year period between 2011 and 2016.

Figure 1 Worldwide Cloud Computing Market Value, 2011 - 2016

Source: MIC, November 2013

Figure 1 Chinese Cloud Computing Market Value, 2010 - 2015

Note: US$1 = 6.09 RMB Source: Cresmart Technology, compiled by MIC, June 2013

Figure 2 Key Players in the Chinese Cloud Computing Industry Supply Chain

Source: MIC, November 2013

3. Development and Deployment of Major Players in Cloud Computing 3.1 ISPs

Figure 3 SAE Service Platform

Source: Sina, compiled by MIC, November 2013

3.2 IT Software Suppliers

Figure 4 Structure of YonYou UAP Platform

Note: ERP is abbreviation of Enterprise Resource Planning; DMP is abbreviation of Dynamic Modeling Platform; BQ is abbreviation of Business Quotient Platform; UCM is abbreviation of Unified Cloud Management; CRM is abbreviation of Customer Relation Management; PLM is abbreviation of Product Lifecycle Management Source: MIC, November 2013

3.3 Data Center Operators

Figure 5 China Mobile's Big Cloud 2.0 Infrastructure

Source: China Mobile, compiled by MIC, November 2013

3.4 Data Center Hardware and Software Providers

Figure 6 Inspur CSP Platform Structure

Source: Inspur, compiled by MIC, November 2013

4. Conclusion

Appendix Glossary of Terms

CRM Customer Relation Management CAGR Compound Average Growth Rate CMS Content Management System CSP Converged Service Platform DMP Dynamic Modeling Platform ERP Enterprise Resource Planning HRM Human Resource Management IaaS Infrastructure as a Service IoT Internet of Things ISP Internet Service Providers ISP Internet Service Provider LBS Location Based Service PaaS Platform as a Service PHP Hypertext Preprocessor ROI Return on Investment SaaS Software as a Service SME Small and Medium-sized Enterprise UAP Unified Application Platform VoD Video on Demand

List of Companies

21vianet 800APP Alibaba Baihui Beijing Teamsun CDN ceopen.net China NetCenter China Netcom China Standard Software China Telecom China Unicom ChinaSoft Dell Digital China Dr. Peng Telecom & Media Group eAbax East China Computer Feng Yun Network hgnsoft.com HP Huawei IBM Inspur Intel iSoft Infrastructure Software Kingdee LinkCloud Microsoft net.cn Neusoft PowerLeader

QIHU360 Raising Management Co., Ltd Sina SkyCloud Taobao TCloud Tencent Wanda Western Digital xinnet.com X-Legend Xtools YonYou

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