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
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.