IBM’s SmartCloud infrastructure technology will soon power the public cloud of Beijing-based Capitalonline Data Service Co., LTD (CDS). This company claims to be one of the biggest Internet data centers (IDCs) in all of China. The company got into the cloud market four years ago and now has IT services as well as cloud and data center services, all of which are aimed at finance, entertainment and government markets.
The Big Blue deal, worth millions, will drive new and enhanced cloud services from CDS. “CDS has made a long-term development strategy for cloud, and one of the important aspects of the strategy is to adopt the world's leading cloud computing technologies. IBM is a leading provider of enterprise-class cloud services globally, with a deep understanding of the Chinese market,” said CDS CEO Qu Ning. “We are confident that with this collaboration we will be able to offer organizations superior public cloud services and help them achieve business innovation and transformation.”
Chinese Public Cloud Market
The Chinese public cloud market is in its infancy compared to the U.S. and other Western industrialized democracies.
“Cloud has come into trial and implementation phase from the initial recognition phase in China. Some metropolitan cities in PRC are trying to build up cloud data centers and enrich various service types on the cloud platform to improve their own investment environment from the government side. Under such circumstances, public cloud was triggered and is entering into another era with more rapid growth,” a recent report from IDC said. “Government is expected to adopt more aggressive measures to introduce more enterprises to leverage the infrastructure. In addition to public cloud, private cloud is expanding among enterprises. Virtualization, as one of the most important technologies, in private cloud is continuously adopted.”
China itself admits the market today is tiny, but expects some serious growing up. Last year the public cloud service market hit $561.6 million, which was up a whopping 73 percent from 2011. By the end of this year, the overall market should be around $1 billion, according to China Information Industry Net (CNII).
CDS Cloud Particulars
IBM isn’t just giving CDS plain vanilla SmartCloud infrastructure. Instead Big Blue’s China Development Lab customized the cloud platform, and will also manage the SmartCloud infrastructure.
“Today, enterprises are looking for high value cloud solutions to drive real business transformation,” said Wang Shenghang, director of the cloud business unit of IBM GCG. “We hope the collaboration will set a new benchmark for cloud and cloud enabled services in the region.”
Edited by
Alisen Downey