Forbes: IBM wants to take Wuxi to China's cloud computing market

Introduction: "Forbes" online edition today, said that for IBM, the establishment of the "Cloud Computing" center in Wuxi, although not a big investment, but IBM can benefit from the Chinese government's economic stimulus funds, and as a springboard to vigorously expand the Chinese cloud computing market. Great opportunity According to China's standards, Wuxi is not a big city, it is adjacent to Shanghai, the town population is only 2 million, and China's big cities are 10 times times the size of the urban population of Wuxi.　　But for IBM, Wuxi means two big opportunities: on the one hand, the world is building a centralized "cloud computing" hub, and IBM has a chance to get the Chinese government's stimulus money. IBM plans to set up a new government-funded cloud computing Center in Wuxi in Tuesday to inspire localized software innovation and boost technological growth in the region.　　IBM will work with Wuxi innovation and creative Industry Park Ipark to host data centers for local software companies, manage IT operations, and provide hosting services for these enterprises ' software as services (SaaS). IBM's goal is to have 2000 software companies in Wuxi, and by providing data center services to these companies, IBM can get a share of their revenues, but the exact proportions have not been disclosed. In the first 6 weeks of the project, more than 20 companies will migrate their data into IBM's cloud computing services. For example, one enterprise plans to use this to operate a network portal dedicated to marketing and distribution services for stainless steel enterprises.　　Another enterprise will use SaaS to create an accounting and supply chain management system, and through the network to provide services to 2000 local bakeries, thereby eliminating the cost of installing and upgrading software. "In the short term, we want to introduce IBM's technology and services to our local independent software developers to help them create a sustainable ecosystem," said Shangyao, deputy director of the government-funded industry management office in Wuxi Hi-tech information (software). Our software developers are not world-class companies, but partners like IBM can bring them a broader market, and we hope to achieve world-class growth. "According to IBM's standards, the deal was small and initially invested at only 20 million yuan, about 3 million dollars," he said.　　But the contract in Wuxi will generate a bigger revenue stream for IBM: The Chinese government announced last November that it would spend 600 billion of billions of dollars on stimulating the domestic economy. Li, dean of IBM's China Research Institute, said the deal was initially funded by local governments, but future development funds could come from the central government. Wuxi is an "experimental plot" for IBM to create a large factory, Li said, and IBM also has 100 other Chinese cities as potential cloud computing customers and wants to attract 200,000 independent software companies to use their own data centers. Li said: "Many projects will be funded by the government's stimulus package." This is an excellent opportunity for IBM toThis can only be used to obtain financial returns, but also to consolidate IBM's position in China's software industry. "There was action." The Wuxi Cloud Computing Center is not the first project IBM has aimed at China's hundreds of millions of economic stimulus plan. In June this year, IBM set up a railway innovation center in Beijing to take a slice of China's huge railway construction program, partly financed by the Chinese government's stimulus plan.　　According to IBM's forecasts, the total mileage of the high-speed railways built in China over the next 5 years will be comparable to the sum of the total mileage of the high-speed railways in other parts of the world. But cloud computing has played a more important role in IBM's expectations. Last month, IBM announced a roadmap for cloud computing and started creating test and development platforms or hosting services for businesses.　　By the end of this year, IBM plans to launch a tool that allows fraud monitoring, supply chain management, and financial risk assessment through analysis of business data stored in the cloud. IBM will also face localization challenges as well as other companies trying to expand into the Chinese market.　　For example, U.S. communications manufacturers often lost in the Chinese market to Huawei and ZTE, and Google, ebay and other internet giants in China's market share has been lost to Baidu and Taobao and other local rivals. But unlike other American companies, IBM has been localized enough to surpass Chinese companies. Shangyao said: "IBM is called the ' blue giant ', we certainly cannot ignore it." "(Ding Macro)