The "Three Kingdoms" Of The Public Cloud Market In China

Charlie Dai

The classic work of Chinese historical fiction “Romance Of Three Kingdoms” describes the history of China after the Han dynasty. This work focuses on three power blocks that fought against each other in an attempt to be the dominant kingdom. After my discussions with many users and vendors at the OpenStack Summit 2013, I see an analogy between these three kingdoms and the evolution of the IaaS market in China as I described it in my report “PaaS Market Dynamics In China, 2012 To 2017” early this year.

Three categories of players are emerging in public cloud market in China, and similar to the Three Kingdoms, these players will fight against each other and collaborate at the same time, accelerating both the adoption and the maturing of cloud solutions in Chinese market.

  • State of Shu: Amazon Web Services. The king of Shu was the descendant of Han dynasty before the era of the Three Kingdoms; because of his “royal blood,” he had many supporters and followers to fight against the other two kingdoms.

Amazon.com is in a similar situation: It has very good reputation among architects and developers in China. However, Amazon’s promotion activities are lagging. Amazon is trying to expand its cloud territory into Chinese market by building a data center in Beijing and recruiting local personnel. However, its relationship with the government is not as good as Microsoft’s, and Amazon’s ambition to launch AWS in China has been slowed down due to local regulations.

  • State of Wu: Microsoft Windows Azure and its alliances. The state of Wu is competitive because it has the natural advantage of the Yangtze River, helping it defend against invasion and expand its territory.
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Where Is IBM’s Sweet Spot In Asia Pacific?

Tim Sheedy
Over the past few years, IBM has certainly copped its fair share of criticism in the Asian media, particularly in Australia. Whether this criticism is deserved or not is beside the point. Perception is reality — and it’s led some companies and governments to exclude IBM from project bids and longer-term sourcing deals. On top of this, the firm’s recent earnings in Asia Pacific have disappointed.
 
But I’ve had the chance to spend some quality time with IBM at analyst events across Asia Pacific over the past 12 months, and it’s clear that the company does some things well — in fact, IBM is sometimes years ahead of the pack. For this reason, I advise clients that it would be detrimental to exclude IBM from a deal that may play to one of these strengths.
 
IBM’s value lies in the innovation and global best practices it can bring to deals; the capabilities coming out of IBM Labs and the resulting products, services, and capabilities continue to lead the industry. IBM is one of the few IT vendors whose R&D has struck the right balance between shorter-term business returns and longer-term big bets.
 
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Four Common Approaches To Private Cloud

Lauren Nelson

In 2012, I wrote a blog titled Private Cloud: 'Everyone's Got One, Where's Yours?' which looked at the perception of private cloud versus the reality of the environments that carry this name. Although reported interest and adoption were high, most environments fell short of the basic characteristics of cloud. Almost 1.5 years later, Forrester continues to see interest in and reported adoption of private cloud -- according to Forrester's Hardware Survey, in 2014, 55% of North American and European enterprises plan to prioritize building an internal private cloud, and 33% already having adopted private cloud. Despite the increased awareness in private cloud shortcomings, Forrester found that only 1/4 of these "private cloud" environments establish self-service access for its users. What's most interesting is that most of these enterprises aren't looking to private cloud for cloud-specific benefits. 

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Four Common Approaches To Private Cloud

Lauren Nelson

In 2012, I wrote a blog titled Private Cloud: 'Everyone's Got One, Where's Yours?' which looked at the perception of private cloud versus the reality of the environments that carry this name. Although reported interest and adoption were high, most environments fell short of the basic characteristics of cloud. Almost 1.5 years later, Forrester continues to see interest in and reported adoption of private cloud -- according to Forrester's Hardware Survey, in 2014, 55% of North American and European enterprises plan to prioritize building an internal private cloud, and 33% already having adopted private cloud. Despite the increased awareness in private cloud shortcomings, Forrester found that only 1/4 of these "private cloud" environments establish self-service access for its users. What's most interesting is that most of these enterprises aren't looking to private cloud for cloud-specific benefits. 

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Local Telcos Are Well-Positioned For Cloud Services In Southeast Asia

Clement Teo

At the 2nd Annual Telco Cloud Strategies 2013 event in Singapore, I moderated a discussion on how Southeast Asian telcos are gearing up to offer cloud services. Here’s what I observed:

  • In the cloud era, SE Asian telcos are moving faster than they are used to. A year ago, Philippine telco Globe Telecom set up a new division, IT Enabled Services, to effectively deliver cloud services, supported by more than 100 professional services people on the ground. While revenues are still low, the new division is now freed from being part of the larger parent company’s processes and can move quicker than competitors to offer managed cloud services for specific industries. Indonesia’s Indosat, on the other hand, has brought both the IT and network divisions together to offer a bundled service — cloud with connectivity — in the same period. Others, like Singapore’s SingTel, acquired IT services company, NCS, to tap into the enterprise segment.
  • Telcos need partners for cloud services. This is essential, as telcos do not typically have all the pieces for an end-to-end solution. For instance, even with a solid IaaS offering, a telco still needs partners to build the value chain in their ecosystem, e.g., SaaS, and grow together. Indosat, for instance, partnered with Dimension Data to offer enterprise cloud services in Indonesia. The partnership combines Indosat’s nationwide connectivity backbone infrastructure and its 10 data center facilities in Indonesia with Dimension Data’s cloud consultancy services.
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Take a forward thinking, while pragmatic approach to Windows migration

Charlie Dai

Many CIOs, technical architects as infrastructure and operations (I&O) professionals in Chinese companies are struggling with the pressures of all kinds of business and IT initiatives as well as daily maintenance of system applications. At the same time they are trying to figure out what should be right approach for the company to adapt technology waves like cloud, enterprise mobility, etc., to survive in highly competitive market landscape.   Among all the puzzles for the solution of strategic growth, Operating System (OS) migration might seem to have the lowest priority:  business application enhancements deliver explicit business value, but it’s hard to justify changing operating systems when they work today. OS is the most fundamental infrastructure software that all other systems depend on, so the complexity and uncertainty of migrations is daunting. As a result, IT organizations in China usually tend to live with the existing OS as much as possible.

Take Microsoft Windows for example. Windows XP and Windows Server 2003 have been widely used on client side and server side.  Very few companies have put Windows migration on its IT evolution roadmap. However, I believe the time is now for IT professionals in Chinese companies to seriously consider putting Windows upgrade into IT road map for the next 6 months for a couple of key reasons. 

Windows XP and pirated OS won’t be viable much longer to support your business.

  • Ending support. Extended support, which includes security patches, ends April 8, 2014. Beyond that point, we could expect that more malwares or security attacks toward Windows XP would occur.
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Forget IaaS vs. PaaS: Devs Adopting Cloud Services Now

Jeffrey Hammond

I get a lot of questions about the best way for developers to move to the cloud. That’s a good thing, because trying to forklift your existing applications as is isn’t a recipe for success. Building elastic applications requires a focus on statelessness, atomicity, idempotence, and parallelism — qualities that are not often built into traditional “scale-up” applications. But I also get questions that I think are a bit beside the point, like “Which is better: infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS)?” My answer: "It depends on what you’re trying to accomplish, your teams’ skills, and how you like to consume software from ISVs.” That first question is often followed up by a second: “Who’s the leader in the public cloud space?” It’s like asking, “Who's the leading car maker?” There’s a volume answer and there’s a performance answer. It’s one answer if you like pickups, and it’s a different answer if you want an EV. You have to look at your individual needs and match the capabilities of the car and its “ilities” to those needs. That’s how I think we’re starting to see developer adoption of cloud services evolve, based around the capabilities of individual services — not the *aaS taxonomy that we pundits and vendors apply to what’s out there. This approach to service-based adoption is reflected in data from our Forrsights Developer Survey, Q1 2013, so I've chosen publish some of it today to illustrate the adoption differences we see from service to service. 

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Huawei’s New Switch Looks Promising, and its Storyline Needs Reinforcing

Clement Teo

by Clement Teo, Bryan Wang, Katyayan Gupta

We recently met with Huawei executives during the launch of its latest product in China, the S12700 switch.  The product, which ships in limited quantity in Q1 2014 is designed for managing campus networks, and acts as a core and aggregation switch in the heart of campus networks. While wired/wireless convergence, policy control and management come as standard features, the draw is the Ethernet Network Processor (ENP). The ENP competes against merchant silicon in competitive switch products, and Huawei claims to be able to deliver new programmable services in six months, compared to one to three years for competitive application-specific integrated circuit (ASIC) chips. This helps IT managers respond quicker to the needs of campus network users, especially in the age of BYOD, Big Data, and cloud computing.

While it is a commendable product in its own right, Huawei will need to position its value more strategically against IT managers that have technology inertia, especially in ‘Cisco-heavy’ networks:

  • Tying the value of the switch to existing and future enterprise campus needs. In the age of cloud computing, big data, mobility, and social networking, IT managers need to solve network challenges like insufficient service processing capability and slow service responses. Huawei says the new switch is able to provide agile services and respond flexibly to changes in service requirements, on demand. For example, the switch has access control built in for wired/wireless access management. This is a good start. Enterprises will need to understand how the switch plays a central role in a campus network, and Huawei should continue to reinforce its agile network architecture’s storyline.
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Tata Communications Lays A Foundation For Targeting Enterprise Accounts

Clement Teo

Tata Communications has emerged from its role as an incumbent Indian service provider to become a globally recognized provider of network connectivity services such as MPLS, Ethernet and IP transit as well as managed hosting in data centers, voice, data, and video.

It was also rated as a strong performer in the Forrester Wave on Managed Global MPLS Q1 2013- a rather impressive showing for a service provider that only just joined this year’s edition of the MPLS Wave report.

More importantly, it has started to become relevant to enterprise network connectivity buyers across Asia Pacific, which is detailed in my report, “Tata Communications Emerges As A Leading Connectivity Provider In Asia Pacific”.

What It Means

  • Tata Communications is starting to measure up to global carriers. I’ve received a number of inquiries on Tata Communications’ regional and global carrier wholesale strategy, as well as its market focus. This increased interest among Forrester clients is a sign that Tata Communications is getting some things right in its carrier business, as the aforementioned global MPLS report makes clear. Its continual network and cable investments are paying off for the service provider.
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Orange Business Services Analyst Event 2013: The Cobbler Sticks To His Last

Christopher Sherman

Brownlee Thomas, Ph.D., Dan Bieler, Henning Dransfeld, Ph.D., Bryan Wang, Clement Teo, Fred Giron, Michele Pelino, Ed Ferrara, Chris Sherman, Jennifer Belissent, Ph.D.

Orange Business Services (Orange) hosted its annual analyst event in Paris July 9th & 10th. Our main observations are:

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