China's cloud computing industry broke out

It seems that 2015 will soon become the focus of cloud computing industry outbreak. Part of the domestic large and medium-sized cities spontaneously will achieve the goal of cloud computing industry planning set in this year.

The cloud computing, hailed by the Ministry of Science and Technology as the title of the fourth revolution in the IT industry, has been roaring in China's major cities like the tornado. Today, Beijing has set a target of 50 billion yuan of scale, and Guangzhou will take 15 billion as the main direction of development. The goal of Shenzhen is to cultivate 10 companies that earn billions of dollars in annual revenue, or even billions.

According to CCID Consulting's data, during the "12th Five-Year Plan" period, the scale of China's cloud computing industry chain will reach 750 billion to 1 trillion yuan. Although many people so far can not figure out what is cloud computing, but this does not prevent investors enthusiasm in this area. Within a short span of two or three years, industrial and private capital, one after another under the escort of government policies, plunged into this "cloud of mystery".

Cloud computing will, as expected, become a revolutionary technological change in the future? Before the chaos and blindness of new energy investments, cloud computing investment will repeat the same mistakes? The cloud computing investment boom, in the end is the will of the government, or Industry trends, or the magic hand of capital in driving this area "Great Leap Forward?

Multi-party battle cloud computing

The scale of cloud computing investment has been kicked off.

According to IDC data, the global cloud service market in 2011 is estimated to be about 28 billion U.S. dollars and is expected to reach 73 billion U.S. dollars in 2015, an average annual increase of 27%, about 5 times that of traditional IT.

Investment Advisor Wang Ningyuan IT industry researcher on the "Genius" reporter said that private capital investment in cloud computing is mainly due to the rapid development of the Internet in recent years, stimulus.

At the end of last year, Zhongguancun Development Group, together with Shenzhen Venture Capital and other seven social investment agencies, formed a "capital group" to invest 14 enterprises in key links in the cloud computing industry chain in Beijing, with a total amount of 203 million yuan. According to a research report by the Investment Group, only three companies related to cloud computing, such as Century Internet, Panshi and Siyuan Information, got financing from a total of 60 million U.S. dollars at the beginning of last year.

However, private investment is only the tip of the iceberg of cloud computing investment. A survey shows that with foreign companies to promote cloud computing by different giants, the main driver of the domestic cloud computing is the local government.

The development of China's cloud base has long been surging. In addition to the proposal of building a "world-class" cloud computing industrial base by "North Canton Wide", the projects of "making clouds" in the second and third tier cities nationwide have also launched in batches. By the local government-led cloud computing industry base, the number is now close to 20.

In October 2011, the NDRC approved the first batch of financial support for five pilot cities: Beijing, Shanghai, Shenzhen, Hangzhou and Wuxi Cloud Computing Demonstration Project, with the funding scale reaching 1.5 billion yuan, including Alibaba, Baidu, Tencent and Kingdee Software, including more than 10 companies, have received 10 million yuan and even billions of dollars in support funds.

Wang Ningyuan believes that cloud computing is very valuable in fields such as telecommunications, education, healthcare and petrochemical because of its high efficiency, large-scale, virtualization and distribution on demand. Therefore, it is not hard for the government to invest huge amounts of money Understand; but one insider also told "brilliant" reporter, in fact, companies have invested more money, and the government investment ratio of about 4: 1.

In addition to the local government's push, IT industry giants are another big investor in cloud computing.

Zhejiang Institute of Industrial Technology Zhang Xiaofei said that more than 80% of the domestic cloud computing projects have been IBM, Hewlett-Packard and other giants swept. Paul Bo Ventures investment manager Bo told "excellence" Reporters: "Large IT companies such as IBM in order to tie in with its overall strategy will also be funding into the field of cloud computing."

Relevant data show that Lenovo Group enterprise-level products developed a three-step strategy, in its third step is 2014-2015, Lenovo will provide cloud computing data center overall solution. In response to major trends in the future of cloud computing, Huawei also introduced the Huawei CloudFabric solution. IBM also focused on cloud solutions through Blue Cloud. The major IT giants will their future focus on cloud computing.

Immature ecological chain

The enthusiasm for investment in full swing, whether it will get the expected return, I am afraid as the same concept of cloud computing, it is difficult to have a unified view.

In fact, after the concept of "cloud computing" emerged in 2006, the industry defined no fewer than 10 of them. Each IT company defined cloud computing according to its own way.

Microsoft defined cloud computing as "cloud + end" and "software + service," while Amazon limited cloud computing to storage, computer processing, queuing and database management system access over the network. In addition, Google, Yahoo, Alibaba, Netease, 360 and so have launched their own cloud computing services.

"Cloud computing is repackaged as a concept that is actually a provision of capabilities that specifically run on top of it and that in different industries, the performance of a business can be very different." Wang Xiao, founding partner of Jiuhe VC, .

Zhang Yongmei, an analyst at Guodu Securities, also told the reporter that "cloud computing is a method and a tool to solve the problem. It is applied to different industries and has different effects, different product and profit models ".

Is due to be widely used, the profitability of cloud computing is also the saying goes.

"Amazon, Microsoft Cloud's web portal, has a clear pricing, since even the billing model are out, cloud computing has been quite profitable model." Century Internet Technology Strategy and Government Affairs chief expert said Li Xixiao, but the Galaxy Zhou Yuanyu and Li Bo, senior investment advisers of securities, think that now the profit model in the domestic cloud computing industry is completely immature.

An insider at NetSuite Technology (300017.SZ) told "brilliant" reporter: "We have been doing cloud computing products, but because of the technology is not mature, there is no customer-oriented products."

Not only that, the industry told the "brilliant" reporter, the development of cloud computing has been subject to safety, standards and technical constraints.

However, other interest issues may be clearer regardless of the profit model.

A survey has referred to the rapid development of the cloud computing industry now, benefiting from the government favorable conditions for cloud computing projects, such as: cheap land, utilities, tax relief and so on.

The use of cloud computing in the name of enclosure, it has long been the industry's open secret. A number of interviewees told "brilliant" reporters that this phenomenon is not uncommon. Li Zhi Xiao also believes that "the current ecological chain of cloud computing in China is not as mature as the Internet and the Internet."

This seems to be quite similar with PV, LED and other industries have experienced investment. In the past, PV development was heavily capitalized. However, due to the lack of demand forecast, significant PV overcapacity was caused and many PV companies suffered a crushing defeat.

However, in the photovoltaic industry chain, equipment manufacturers still make substantial profits. Cloud computing will repeat this scene?

Wang Xiao told the "brilliant" reporter: "Now that the government dominates the so-called cloud computing base is to build infrastructure.Cloud computing infrastructure is only paving the way to run the car, it takes some time, and the need for commercial operation to put it Well, in order to find the real user needs. "

The road can not have a car running is not necessarily, but the road people must be making money. "China's construction has always been hard and light soft, and now many of the building of the cloud base are covered in the engine room, the Ministry of server." Lizhi Xiao said.

"Now think of basic hardware is money. No matter how the back of the system is certainly built in the front, the hardware can make money first." Li Bo said. Investment Group pointed out in its research report, cloud computing infrastructure in the short term there is a certain level of cyclical investment opportunities.