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The China Cloud Programme: Leapfrog Tech Dependence on Foreign Suppliers

F.Y. Teng | Feb. 28, 2013
According to market research firm BroadGroup, a massive initiative is underway that should double data centre capacity in the country by 2016.

Market research and consulting firm specialising in technology areas such as data centres and IT infrastructure, BroadGroup released Thursday (February 28, 2013) its latest report-China Cloud, Challenges and Opportunities in China's Cloud Datacentre Deployment-wherein it details the Chinese government's "strategy to leapfrog technology dependence on foreign suppliers and generate long term economic growth for its 1.3 billion people."

BroadGroup consultants said that their report was "based on qualitative research and mor than 100 face to face interviews" which altogether indicated that "a massive programme" was underway to "more than double datacenter capacity [in China] by 2016 with an overall investment of US$370 billion."

They made specific reference to China's 12th 5-year plan, which they said, "distinguished [the Chinese government] globally by investing significantly in creating new cloud platforms, software and applications supported by a programme of massive cloud datacenter deployment"

"Beginning with the initial government plan for 5 cloud cities...this has now proliferated across at least 15 provinces with significantly funded projects," they said, drawing attention to other detailed findings, such as how "the North of China forms the nexus of overall project investment," that "a total of 109 projects, most of which include the construction of new cloud datacenters," and how "the top five provinces represent more than 88 percent of the total investment" in China.

They also presented analysis of the various challenges faced by China's developing datacenter space. "The success of China Cloud projects will ultimately depend on business models and demand, but the report explains the many political, commercial abnd technical hurdles already existing in the datacenter market relating to bandwidth availability, network access and power supply," they said. "Opportunities are certainly present in the market, but only government policy can unlock changes in investment rules and those governing foreign participation in the market."


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