Cloud Computing in China booming as American giants are pushed out

D.Collins
CMR

China’s cloud computing market is expected to be worth 37.2 billion
yuan (US$6 billion) in 2017 as demand for the service grows, the
Chinese-language China Securities Journal reported on Friday.

Some American tech companies are watching the largest and fastest I.T.
market in the world, China, now pushing them out of of the country.
IBM for one is a company imploding fast with negative year over year
sales as customers in China walk away. This was the direct result of
the Snowden case and it was a real wake up call for Central leadership
in Bejing.

A report that came out today citing Wang Feng, manager of China Telecom’s
cloud computing company, said the global cloud computing business is on
the rise and that China is one of the nations witnessing fastest development
in the sector.

The average annual growth rate of the market is projected to stand at 26%
in China between 2013 and 2017, higher than the global rate of 17%, Wang
said. The market was valued at 13.4 billion yuan (US$2.1 billion) last year,
according to the report.

From the report, China’s three telecommunication giants–China Mobile, China
Telecom and China Unicom–have shown great interest in tapping the potentially
large market. China Mobile will inject billions of yuan in cloud computing
facilities to construct large-scale data centers, said Li Huidi, the firm’s
assistant president. China Unicom, meanwhile, plans to set up 10 cloud data
centers across the country, said Jiao Gang, general manager of its cloud data
company and China Telecom aims to develop a hybrid cloud business in 2014 and
2015, Wang said, predicting that its compound annual growth rate in cloud business
will surge by 156% in 2017 and take an 18% market share in China at that point.

10 comments

  1. 9/11wasaninsidejob! says:

    nice

  2. David Chu says:

    The Yankees are not even checker players. The Left Wing (Neolibs) doesn’t know what the Right Wing (Neocons), same faces on the same coin, is doing.

    Law of unintended consequences . . . you bite the hand that buys your US Toiletries and your Cloud service companies goes poof!

    It would be interesting to see what happens to GM and Ford in China as China replaces 5 million old clunkers!

    Hey Dan, you are going to write about the Deal of the Century?!?

    • D.Collins says:

      Hey David-Deal of the century? Which deal are you referring to?

      • David Chu says:

        Are you being serious? The $400 Billion natural gas deal that was signed between Russia and China in Shanghai on May 21.

        • D.Collins says:

          O.k., I thought that was what you were talking about. I
          may have mentioned but as it as covered so well by the mainstream news
          I didn’t get around to it.

          • David Chu says:

            You hear anything more about the other potential deal with the Western pipeline that Putin has hinted on?

          • D.Collins says:

            Not following an additional pipeline, will check that out.

          • David Chu says:

            What’s the Chinese reaction to this Deal of the Century? The average man and woman in Shanghai?

          • D.Collins says:

            I am going to post something on Russia’s naval visit to Shanghai which was quite successful.
            Regarding the oil pipeline, didn’t hit the radar of many of my friends. You know in China,
            everyone is busy making money or trying to anyway.
            Shanghai Ren don’t know much about Russian’s or Russia, not like up in the north in Shenyang
            or Harbin. Sad thing is, America is much more agreeable to Chinese than Russia, but I am worried
            politically our government may push Russia and China into a anti-U.S.
            bloc in Asia.

          • Keith says:

            The U.S. is exactly doing that – Pushing China and Russia to form the Asia bloc.

Leave a Reply

Your email address will not be published. Required fields are marked *