My January 2013 report “PaaS Market Dynamics in China, 2012 To 2017,” forecast that China’s platform-as-a-service (PaaS) market would remain in flux until 2015. But now I think it will take even longer for the cloud landscape in China to consolidate and stabilize, for three reasons:
1. The boundary between infrastructure-as-a-service (IaaS) and PaaS is breaking down.
2. Emerging technologies like Docker are having an impact on technology and mindsets.
3. China has emerging startups in both the IaaS and PaaS segments.
The startups mainly focus on differentiating the cloud user experience by automating various layers to deliver unique value to potential adopters of cloud solutions. They include:
QingCloud.Founded in 2012, QingCloud raised US$20 million in Series B funding in January 2014. Its IaaS offerings for public and virtual private cloud include computing (image and instances), network (VxNet, routing, elastic IP, and load balancing), storage (volume and snapshot), database (MySQL-based, master/slave synchronization support with auto-snapshot), security (group policy and SSH key pair login), and management features (web console to deploy, manage, and monitor resources), which are billed on a per-second basis.
Although Forrester expects China’s public cloud market to show solid growth through 2020, we have observed that organizations face barriers to adopting public cloud. Survey results indicate that data privacy, residency, loss of control, and security remain the top barriers for organizations adopting public cloud in China. This shows that Chinese customers are getting more knowledgeable about cloud and would like to understand cloud players’ offerings in more detail.
To ease concerns about public cloud usage, in mid-2013 the Chinese government and some leading cloud and data center service providers in China initiated an industry standard to evaluate cloud service offerings. After six months of discussion, they agreed upon version 1.0 of the industry standard, which includes three categories and 16 detailed SLAs: