On the night of March 19, Wanda Network Technology Group and IBM reached a strategic cooperation. This will have a great impact on Chinese cloud business, and the industry mostly thinks it is the win-win cooperation for each other in a certain period.
One the one hand, with the collaboration, Wanda will develop its public cloud business in China easier, with IBM Cloud Platform and many advanced technologies will comes with the cooperation to enhance Wanda cloud services.
Besides, it is introduced that Wanda has already built up more than one cloud data centers, which are all deployed with industry-leading technologies based on IBM Cloud Platform. Therefore, customers who purchase Wanda cloud services can also receive advanced technologies from IBM, including IBM PaaS, IaaS, Watson AI system, IoT, blockchain and more.
On the other hand, Wanda will help IBM to promote and popularize IBM Watson services. At the very beginning, Wanda will introduce IBM Watson Conversation service into China, which allows developers to add natural language interactions into application designs. In the future, Wanda will bring more IBM Watson services based IBM Watson Cloud Platform.
In terms of Watson commercial AI services, IBM should be the top class in the entire world. However, it is still the early stage that IBM Watson AI service entering Chinese market. In August 2016, IBM and 21 native hospitals singed for IBM Watson tumor solutions agreement for promoting Cognitive Caring.
At the end of 2016, IBM, Zhejiang Province Traditional Chinese Medicine Hospital and Cognitive Caring announced to set up Zhejiang Province Traditional Medicine Hospital & Watson Joint Consolation Center. It meant Watson officially landed in China. Now, Wanda and IBM Watson cooperation cannot only enhance Wanda cloud business, but also accelerate Watson developing in China.
Foreign Public Cloud Companies in China
For public cloud, IBM faces fierce competition. In China, public cloud suppliers must hold IDC license so that they can legally operate. Nevertheless, those pure foreign companies cannot get the license! That’s why IBM, MS, and Amazon are all trying to cooperate with Chinese companies who hold the IDC license to enter Chinese market, and then they can build data centers in China as well.
These years, IBM has made many efforts for landing its cloud services in Chinese market. In 2013, July, the cooperation with Capital Online made IBM Public Cloud successfully enter Chinese market; in 2015 Oct, IBM brought Bluemix into China via the collaboration with 21Vianet.
Actually, it is long-standing that foreign cloud service giants taking the queue to find the licensed companies for occupying Chinese market. In 2012, MS, Shanghai government and 21 Vianet joint together making MS cloud service entering China. This was the first case that foreign companies’ public cloud service landed in China. One of three foreign cloud giants, Amazon is the last one. In 2016 August, it announced to partner Sinnet. After that, Amazon began to offer cloud service in China smoothly.
Although three big foreign cloud companies finally landed in China, while among Chinese native players, only Aliyun takes dominance. In 2015 Chinese Public Cloud IaaS Vendors’ Evaluation Report, IDC published each participant’s share in Chinese cloud market, and Aliyun possesses the biggest share, while China Telecom, China Unicom, MS, and Tencent are next to it in sequence.