Microsoft is officially launching the commercial operations of its cloud offerings in China today. It’s been only nine months since Steve Ballmer, the former CEO of Microsoft, made the announcement in Shanghai that Windows Azure — now renamed Microsoft Azure — would be available for preview in the Chinese market.
I call that Episode I of the China Cloud War. In the report that I published at the time, “PaaS Market Dynamics in China, 2012 To 2017”, I made three predictions — predictions that are now being fulfilled. More global players are joining the war; customers have gotten familiar with cloud concepts and are planning hybrid cloud implementations for their businesses; and traditional IT service providers have started to transform themselves into cloud service providers.
I talked with Microsoft and Citrix last week, and I strongly believe that Episode I has ended and Episode II has just begun. In the battle for partner ecosystems and real customer business, here are the three major plots that enterprise architects and CIOs in China should watch unfold:
The thrree kingdoms will fight with the gloves off. In my blog post last year, I described three kingdoms of global vendors in Chinese cloud market: Microsoft, Amazon, and vendors behind open source technology like OpenStack and CloudStack.
Microsoft is leading the market as the first company in China to provide unified solutions for public cloud, private cloud, and hybrid cloud across infrastructure (IaaS) and middleware (PaaS). This builds on its deep understanding of enterprise requirements, its massive developer base, and the ease of use on the Windows platform.
The entire cloud ecosystem in China is undergoing significant change. End users are getting more serious about adopting cloud solutions and ISVs are working with telecom carriers and partners to deliver mission-critical business applications in the cloud. My latest report, “Brief: Major Players Are Targeting The Chinese Cloud Market For Core Business Apps,” summarizes the overall trends of cloud adoption in China, looks at each vendor’s solution, and provides high-level suggestions. Specifically, I discuss:
General trends in SaaS adoption in China. Timing is very critical for market penetration. The survey results I share in this report show a dramatic increase in decision-maker interest in cloud-based offerings. This is probably the last chance for companies that want significant market share, but do not yet have it, to enter the Chinese SaaS market.
All of the major multinational vendors are moving. Global players have been closely watching the cloud market in China for years, and in 2013 they have made strategic moves. SAP, Oracle, Microsoft, and Infor have adopted different strategies in China based on the strengths and capabilities of their core product and solution offerings, technology stack, and partners. The report will tell you how each of these companies is working to address the Chinese market.
Local market leader practices. Large multinational vendors are not the only ones with skin in the game. Major local players in enterprise management software, such as Yonyou and Kingdee, are also working hard and have achieved significant progress in this space. The report will tell you what advantages their global peers need to have and which shortcomings they need to improve upon.