Microsoft brings Windows Azure to China – is this the start of a new era?

Back in October 2011, Microsoft named the initiative to introduce Windows Azure cloud platform into the Chinese market “Moon Cake,” which represents harmony and happiness in Chinese culture. On May 23, 2013, Microsoft made the announcement in Shanghai that Windows Azure will be available in Chinese market starting on June 6 —  almost half a year after its agreement with Shanghai government and 21ViaNet to operate Windows Azure together last November. Chinese customers will finally be able to “taste” this foreign moon cake.

I believe that a new chapter of cloud is going to be written by a new ecosystem in China market, and Microsoft will be the leader of this disruption. My reasons:

  • The cloud market in China will be more disrupted. Due to the regulatory limitations on data center and related telecom value-added services operations for foreign players, the cloud market for both infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) has been an easy battlefield for local players, such as Alibaba/HiChina. Microsoft’s innovative way working with both government and local service partners to break through this “great wall” shows all of the major global giants, such as Amazon.com, the great opportunity from this approach to the Chinese market. We can anticipate that they will also enter the Chinese market in the coming six to 18 months.
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Huawei’s Enterprise Channel Strategy is Making Progress

I was encouraged to see that Huawei had a proper track session on its channel strategy during its 10th Global analyst summit in Shenzhen.  The track is another sign that the company’s enterprise division is maturing and taking the right steps to expand its activities in China as well as globally.

In 2012, Huawei recruited 1,289 distributors, VAPs, and tier 2 channel partners to reach around 3,789 worldwide, which represents growth of 52% in China, Europe, and 26 other key countries globally.  Huawei’s enterprise share of channel sales was around 55% (excludes Operator resale) of its total revenue in 2012, a 32% revenue growth through channels from 2011. Huawei is also starting to build its services and software ecosystems with 700 authorized service partners and 200 ISVs. 

Overall, three key things that stood out to me about Huawei’s partner programs are:  

  • A more structured and well-defined partner program: The partner program has evolved considerably since last year and Huawei is working towards mapping its key accounts and streamlining the account management process.  Through the segregation of 5000+ named accounts (key accounts based on deal size) and defining the customer engagement model for high value accounts, Huawei can bring about the clearer channel architecture that will be required to build an open and successful channel ecosystem.
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2013 Huawei Global Analyst Summit: welding together networks, devices and services

 

Dane Anderson, Dan Bieler, Charlie Kun Dai, Chris Mines, Nupur Singh Andley, Tirthankar Sen, Christopher Voce, Bryan Wang

 

Huawei is one of the most intriguing companies in the ICT industry, but its overall strategy remains largely unchanged: imitating established products and services, then adjusting and enhancing them, and making them available at an attractive price point. But to be fair: Huawei is pushing more and more innovative products.

In 2012, Huawei’s annual revenue growth slowed down to 8% to CNY 220 billion (about US$ 35 billion). During the same period, its EBIT margin remained flat at 9%, despite the changing revenue composition due to the growth of its consumer and enterprise business. Unlike last year’s event which was dominated by the announcement to push into the enterprise space, this year’s Global Analyst Summit in Shenzhen saw little ground breaking news. It was more of a progress report:

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Forrester’s “The State Of Consumers And Technology: Benchmark 2012, China” Report Shows Differences In Technology Adoption Stage

I am delighted to announce that for the first time, our annual US and European consumers and technology benchmark reports have a Chinese counterpart: The State Of Consumers And Technology: Benchmark 2012, China. This report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for understanding how consumers change their technology adoption, usage, and behavior over time. The report, based on one of our Asia Pacific Technographics® surveys, covers a wide range of topics, such as online activities, device ownership — including penetration data and forecasts for smartphones and tablets — media consumption, retail, social media, and a deep dive on mobile.

For this report, we divided the metropolitan Chinese online consumers into three distinct groups based on their technology optimism and economic power:

  • Early adopters are high-income individuals who are also technology optimists — people who see technology as a positive force in their lives.
  • Mainstream users are either high-income technology pessimists or low-income technology optimists.
  • Laggards are low-income technology pessimists.
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