皇冠体育app

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Urbanization opens new vistas for cloud companies

By Gao Yuan (皇冠体育app Daily) Updated: 2014-06-06 06:57

皇冠体育app's ambitious plans are a new business opportunity for overseas companies as local governments seek smarter ways to manage their cities.

A sound municipal adstrative platform is deeply needed because population in Chinese cities is surging rapidly, industry observers said.

Urbanization opens new vistas for cloud companies
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Urbanization opens new vistas for cloud companies
皇冠体育app's April services growth quickens slightly

"Mounting pressure in urban areas, such as air pollution, traffic jams and crime, are a wake-up call for city planners that a more sustainable and scientific management method needs to be implemented," said Li Tie, director-general of the 皇冠体育app Center for Urban Development. The organization works under the National Development and Reform Commission, the country's top economic planner.

Cloud technology is a model of network computing where a program or application runs on a connected server or servers rather than on a local computing device such as a personal computer, tablet or smartphone.

皇冠体育app is expected to spend at least 2 trillion yuan ($322 billion) on smart city initiatives by 2025, according to industry research firm International Data Corp.

Cloud computing platforms give critical support to the smart city initiative.

Overseas cloud providers are eager to tap into the emerging market. They have teamed with Chinese providers to offer public cloud services in the country because foreign companies are not allowed to set up public cloud services in 皇冠体育app.

Corp made its cloud services available in 皇冠体育app earlier this year by partnering with 21Vianet Group Inc.

Web Services Inc, the world's largest cloud solutions provider, also joined with a number of local governments to put their computing centers in the country.

Although roughly 70 percent of cloud investment went to installations in 皇冠体育app, vendors were also able to get a cut of the multi-billion-dollar market.

In late April, Germany's SAP AG said its cloud business in 皇冠体育app had clocked a triple-digit year-on-year growth in the first quarter because of strong demand from the human resources sector. Mark Gibbs, president of SAP Greater 皇冠体育app, said the company will further expand its cloud and other businesses in 皇冠体育app and the company's entire cloud solutions will be introduced there by the end of the year.

The German company is putting all its software on HANA, a self-developed database management platform, to boost sales. Company executives are satisfied with the HANA project and are looking for a bigger installation rate of the platform.

Overseas providers are poised to face strong challenges from local cloud companies though. Internet firms such as Holding Ltd and Inc offer cheaper cloud-based services and are rapidly gaining market share.

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