Asia late to cloud computing party as industry on fast track to growth

May 21, 2012

China is home to one out of every five people in the world, but, with its high tech segment only recently burgeoning, the country accounts for just 3 percent of the global cloud computing market, according to CCID consulting.

CCID estimated that China should grab an increasingly-large share of the $90 billion 2011 cloud computing market in the next few years. China's market for the cloud was valued at $2.62 billion in 2010, but the number is expected to rise in 2013 to about $18.6 billion, growing at a compound annual rate of 91.5 percent. An estimate by the Internet Society of China anticipates that the market will approximately $158 billion by 2015.

Chinese government involvement
The growth of the Chinese cloud market comes at the same time as concerns about cyber espionage from the Chinese government have raised alarms in the federal data protection sector. Despite claims from both independent outlets and the U.S. government, the Chinese government denied any involvement in such activities.

Network news website Datacenter Dynamic anticipates that the government will account for much of the growth of the cloud in China through the National Cloud Computing Industry Development Plan. As part of a separate initiative, the website reports that a maximum of $237 million will be given to 12 projects in five cities moving to cloud computing strategies.

Global senior VP from Microsoft, Zhang Yaqin, told Datacenter Dynamics that the consideration of who will build the infrastructure would come down mainly to cloud security and reliability.

The cloud across Asia
Research across the entire Asia/Pacific market finds that development of the cloud is slow to pick up across the region, according to an IDC survey. The IDC reported that just 19 percent of retailers in key markets across the region are actively looking to implement cloud services, with 32 seeking to do so in the next two to five years.

This slow growth comes even as IT vendors are expanding to Asian markets with the economy turning upwards at a quicker rate than in some other regions. Data security in the cloud, protection by firewalls and the challenges of integration were cited in the IDC study as barriers to cloud integration across Asia, though the research company believes that greater back-end investment would speed up the adoption process as the concern drops.

-McAfee Cloud Security