CCW Research, under the guidance of Institute of Scientific and Technical Information of China (ISTIC), recently unveiled Analysis on Current Situation and Development Trend of China’s Private Cloud Market Over 2016-2017, analyzing definition of private cloud, market pattern in China and the chief players in the market.
Competition turns white-hot, both technology and execution are must-haves.
With increasing demands for private cloud products and services, domestic private cloud market becomes the focal point of Chinese IT vendors. China’s private cloud market shows diversification tendency, reflecting on various vendors with different technical characteristics and advantages jumping into the fray, including public cloud providers, traditional IT vendors, telecom operators, system integrators and open-source startups.
The above chart represents the competitive positions of private cloud providers between 2016 and 2017, on the horizontal axis is innovative development capability, on the vertical the marketing execution capability. It’s easy to find that VMware, Huawei, Chinac.com and NewH3C are far ahead in innovative development and technical advantage, while Huawei, NewH3C, China Telecom, ZTE, and Inspur take the lead in marketing execution.
The importance of software and service significantly increases, and the capacity to innovate becomes more crucial.
According to CCW Research’s research on China’s private cloud market, 38.8 percent of enterprises build private cloud by overall purchasing software and hardware, while over 60 percent of users build private cloud by merely software investments. Simply put it, software has been the core of private cloud construction, amongst which cloud management platform and related virtualization software are the most important elements.
Such a situation is formed by private cloud clients. Medium and large-scale enterprises make up the main customers of private cloud products and services. As business data is the lifeline for every modern enterprise, they are most likely to move their core businesses onto private cloud for the sake of data security and regulatory requirements. Besides, enterprises also need private cloud to help tease out the huge amount of IT hardware assets so as to make effective use of the owned assets.
Traditional IT vendors that started with hardware, such as Huawei, Inspur and NewH3C, are dominant in certain industries and fields, therefore being familiar with enterprise users’ requirements and having better understanding of private cloud industry businesses. However, these enterprises also have their limitations. They usually focus too much on hardware, relatively weakening software technology and service capabilities.
Other cloud computing providers, such as Chinac.com, QingCloud, and Alibaba Cloud, adopt a unified architecture for both private cloud and public cloud, thus not being subject to traditional hardware. They can fully exploit the comprehensive advantage of public cloud, private cloud, hybrid cloud, as well as IaaS and PaaS to deliver more convenient service experience.