Cloud Computing News

Chinese government to announce cloud computing plan

Trigger Networks — Mon, 07 May 2012 08:35:30 +0000

China's national-level development of the cloud computing industry has been approved by the country's State Council or cabinet and will be announced soon. The industry is expected to provide business opportunities worth 200 billion (US$31.8 billion) over the next three years.

The country's Ministry of Science and Technology finally wrapped up the country's cloud computing plan in March, according to the state-run news agency Xinhua. The industry will be the fourth innovation in the area of IT, following mainframe computers, personal computers and internet development, the ministry said.

The future cloud computing market is projected to expand by a compound rate of 28%, according to some market research companies. Leading IT research firm Internet Data Center forecast that the global cloud computing market will be worth US$800 billion over the next three years and will attract global IT giants to grab a share the market.

To support the development of cloud computing, the National Development and Reform Commission and the ministries of finance and of industry and information technology a few days ago jointly approved special funding of as much as 1.5 billion yuan (US$238 million) and selected five pilot cities with 12 key programs for the project.

Some of programs will be given more than 50 million yuan (US$7.9 million) in subsidies, said ministry sources, adding that the government is seeking to cultivate around 10 leading cloud computing companies with more than 10 million users and annual revenue of 5 billion yuan (US$795 million) separately to meet the goal of reaching 200 billion yuan (US$31.8 billion) for cloud computing operations over the next three years.

Story from http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120506000057&cid=1201

Snapshot of start-up culture in China

Trigger Networks — Mon, 07 May 2012 08:28:21 +0000

China is often seen as a cheap manufacturing base but, while new business ideas are thin on the ground, angel investors are beginning to find a role

We’ve invested in 26 start-ups, and many of them are doing things that are unique. We see a lot of innovation. We see music and literature start-ups

ALL OVER Beijing you can see the banners – “Patriotism, Innovation, Inclusion, Virtue” – a campaign by the Communist Party to distil the Chinese capital’s spirit.

One of these four qualities is proving particularly tricky to cultivate, especially in the much desired tech business, and that is innovation.

Foreign firms are keen to take advantage of China as a low-cost manufacturing base, but few are keen to invest in China as a place to research and develop new products. Ideas are thin on the ground, while piracy and intellectual property theft are a bane.

Angel investors are increasingly finding a role, however.

Xu Xiaoping, one of China’s best-known angel investors, has gone on the record as saying that he does not believe that China will be an innovation hub for at least 20 years because creativity is simply not a mainstream phenomenon right now.

It doesn’t stop him looking however, and focusing on what niche opportunities there are.

Xu’s Zhen Fund aims to provide young entrepreneurs with seed capital to start new ventures focused on the Chinese market. The fund was set up at the start of last year, and within a year had invested in more than 80 companies, including the online dating site Jiayuan.com, which listed on the Nasdaq Stock Exchange in May 2011.

Formerly vice-chairman of New Oriental Education Technology Group, Zhen Fund hooked up with Sequoia Capital China late last year to create a €22.5 million joint venture seed fund.

Zhen Fund’s plan is to invest in about 100 companies within two years, with each investment ranging from around €75,000 to €225,000. About €2.3 million of the new fund has already been invested.

“On the principle that great people are the key to successful companies, we invest in the brightest and most promising entrepreneurs, rather than certain industries or markets,” Xu told the China Daily recently.

Steve Bell, managing director of Trilogy VC, which specialises in funding start-ups founded by Chinese university students, says there is a herd mentality in every country when it comes to investing in start-ups, and this is also true in China.

In China, there is very little in the way of angel investor culture – this is, after all, the first generation to get involved like this.

“There is a real lack of good investors. I am absolutely sure the biggest companies are going to be started by students. My brother is in Stanford and there are 500 guys there looking for investments. Here, at Tsinghua and Beijing University, it’s just me,” said Bell.

“We focus on the very young entrepreneurs. I was with a group of 300 students and it was very clear they don’t hear from people like me. I asked them: ‘How many of you will start a company?’ Two hands went up. The others said: ‘I’ve no experience’.”

He visits university campuses and asks students for their role models – when they mention Microsoft and Apple and Google, he points out how all of them were started by students.

“All that matters is that you can build a great product. They have many ideas. I like start-ups that are doers, people who build a project,” said Bell.

When visiting universities, Bell gathers a large group of students, then gives them one minute to pitch their ideas in front of a large group of their colleagues. Bell gives the student with the best idea 3,000 yuan ($476).

“We’ve invested in 26 start-ups, and many of them are doing things that are unique. We see a lot of innovation. We see music and literature start-ups,” said the Texan.

Bell has been in China since 2006, but has been concentrating on China full-time since 2009.

“We want companies to get big in terms of revenue. We have an equity stake, are active investors generally with a minority board seat. We love to talk product and distribution with the teams but the entrepreneurs run their business. We generally get very involved in helping get ready for the next funding round and making those VC introductions once the product is successful in the market,” said Bell.

Kai-fu Lee, chairman and chief executive of the tech incubator Innovation Works, which invests in mobile internet, consumer internet, e-commerce and cloud computing ventures, believes China will become a tech giant, based on mobile internet growth.

The former head of Google China and a one-time executive at Microsoft, Lee bases his belief on the fact that by the end of last year, China had 513 million netizens, including 356 million mobile internet users, and about 35 per cent of urban Chinese use smartphones.

Lee said mobile internet start-up costs in China are very low. In China an angel investor can buy a 20 per cent stake in an early-stage company for €225,000, whereas a similar stake in the US would cost about €1.5 million.

China is the world’s third biggest smartphone market, with around 35 per cent of urban Chinese using smartphones, compared to Singapore’s 62 per cent and Australia’s 37 per cent, according to a survey in November by Google Inc and the research company Ipsos.

Innovation Works, which he set up in 2009, has so far incubated 47 projects. Of these, 28 are in progress, 13 have completed their first round of fundraising, also known as A-round investment, two have been traded in mergers and acquisitions, and four were failures.

In recent months Lee has also said that he is likely to invest in more online game projects as the sector is “developing very fast”.

This fast development awakened the interest in Ireland. During Taoiseach Enda Kenny’s visit to China in March, Enterprise Ireland announced the appointment of Liam Casey as start-up ambassador for the greater China region, trying to get the Corkman to use his considerable influence to get Chinese entrepreneurs to choose Ireland as the location for their next high-tech start-up businesses.

Story from http://www.irishtimes.com/newspaper/finance/2012/0507/1224315684273.html

Taiwan Cloud Valley aims to build a coherent ecosystem

Trigger Networks — Wed, 02 May 2012 04:38:36 +0000

By Sheila Lam, Computerworld Hong Kong 26-Apr-2012

Following the great success of its semi-conductor and hardware manufacturing industry, Taiwan is eyeing on cloud computing for the continuous development of its technology industry. The Cloud Computing Association in Taiwan (TCCA) launched the Cloud Valley project in March, aiming to build a comprehensive supply chain of cloud computing services that involve both hardware and software players.

Three phase-development

Divided into three different phases, the Cloud Valley project also plans to actively take part in China's cloud computing trial plan and join hands with the Chinese counterpart in formulating common cloud computing service and technological standards.

The first phase is the opening of the demonstration center, where more than 20 technology providers, including Trend Micro, to show case cloud computing base technology. The center also plans to provide a platform for integrated research and development, testing, display experience, incubation, and business matching services for cloud computing development.

In phase two, expected to be establish by 2013, will be a business incubation center. Located at the same building as the demonstration center, it plans to nurture and create new cloud computing business.

As part of phase three, a cloud service industry park is expected to open for development in 2014. Located at Fujhou at New Taipei City, the industrial park with a size of 5.19 hectares is expected to start its development in 2014, upon the land acquisition is completed.

According to Tzi-Cker Chiueh, secretary general of TCCA, development of the industrial park will be opened for property developers. The bidding process will be handled by the government and based on the development requirements established by TCCA.

Led by Taiwan's Ministry of Economic Affairs, Chunghwa Telecom as well as local tech industry associations and institutes, TCCA is an industry association that involved also different local and foreign tech players in Taiwan.

"TCCA aims to help members companies, the local and foreign tech providers, to connect and collaborate," said Shyue-Ching Lu (pictured), president of TCCA and CEO of Chunghwa Telecom. "Through collaboration, we hope to create an ecosystem to develop technologies in the cloud computing space, which is identified as the key future industry development in Taiwan."

Story from http://www.asiacloudforum.com/content/taiwan-cloud-valley-aims-build-coherent-ecosystem?section=feature&utm_source=silverpop&utm_medium=newsletter&utm_campaign=northcloud

Cloud security remains a challenge in China

Trigger Networks — Wed, 02 May 2012 04:33:51 +0000

By Sheila Lam, Computerworld Hong Kong 25-Apr-2012

Cloud computer is transforming data center operations today. Apart from consolidating, virtualizing and sharing computing resources, it has also changed how IT infrastructure is being secured and protected.

Aiming to help enterprises navigate the new security challenges in cloud computing, Trend Micro is altering its software delivery model and security offerings. But these changes may not fit all markets.

"We are definitely making changes in our business and delivery model," said Oscar Chang, chief development officer and executive vice president of Greater China sales of Trend Micro. In addition to its traditional on-premise endpoint security license, the company is also expanding its subscription-based security offering, Smart Protection Network, to provide it in an hourly-basis.

"Some users are dealing with the outburst (demand for computing power) with Amazon, but they are only using it for three hours," he said. "They are asking, can we charge them only for a three-hour license. The answer is yes."

Chang noted cloud computing is driving enterprises to transform its IT infrastructure planning from "building for the peak to building for the regular." When there is an ad hoc demand for computing power, users will be outsourcing for public cloud services.

China isn't ready for public cloud security

To support a transforming delivery and charging model of security software, Chang noted the company has partnered with different global public cloud providers like NTT America and Verizon, as well as with Chunghwa Telecom in Taiwan. In Hong Kong, the company has partnered with NTT Com Asia to bundle its security offering with the public cloud offerings.

"It is hard to tell whether Alibaba or China Telecom will win as the leading public cloud provider in China."

-- Oscar Chang, chief development officer and EVP, Greater China sales, Trend Micro

But these offerings may not fit all markets. Chang noted similar partnership with local providers in China has yet to be established.

"Progress of public cloud is very slow in China" he explained. While many enterprises -- particularly game developers and pioneer cloud users from the US -- are demanding public cloud servers in China, they find it difficult to identify the right service. "No one is providing [a national-wide] public cloud service," he added.

Chang noted in China most of the cloud initiatives are "community cloud", meaning it focuses on sharing computing resources on a provincial level. There is yet a nation-wide public cloud services available.

"It is hard to tell whether Alibaba or China Telecom will win as the leading public cloud provider in China," he added. "But currently, there is none."

Securing virtualized environment

Despite a slower progress in its public cloud security offering, Chang said it is quite a contrasting experience for providing security in the private cloud and virtualized environments.

Through its partnership with VMware, he noted the company has recorded a tremendous growth for Deep Security, its virtual security appliance offering.

"Riding on the tremendous growth of virtualization adoption in China, our business [in virtual security appliance] have grown by seven times," said Chang. "We have built a very close relationship with VMware, both in terms of technology integration and channel development."

The tight integration with VMware's platform allows Deep Security to be a better performed and cost efficient virtual security appliance offering, according to Eva Chen, CEO of Trend Micro.

She noted the study from Tolly Enterprises Test Report indicates Trend Micro's offering can save up to US$539,000 in three years in a desktop virtualization environment with 1,000 virtual desktop interface virtual machines.

Consumerization drives mobile security

On top of the virtualized environment, Chen noted the advent of IT consumerization is also driving demand for mobile security.

"Corporate IT is losing control over BYOD (bring-your-own-device)," said Chen. "We've seen a 400% increase in infections on Android platform in the last three months. Our customers soon realized that mobile device management (MDM) alone is inadequate."

To protect enterprises from the rising mobile malware, she said Trend Micro's Smart Protection Network includes the Mobile App Reputation. The service identifies malware from legitimate apps, as well as rates the security level and battery usage of different mobile apps.

The company is also planning to launch a hosted mobile device management (MDM) in the second half of 2012. Through partnering with Taiwan-based Chunghwa Telecom, this service will provide foundational MDM services, like locating lost phones or remote data wipe.

"To secure customer's journey to the cloud, Trend Mirco will continue to focus on security in a cloud, virtual and mobile environments," Chen concluded.

Chinese government official: Is cloud HK's next advantage?

Trigger Networks — Wed, 02 May 2012 04:32:19 +0000

By Carol Ko 27-Apr-2012

For years, Hong Kong has been a world renowned financial and logistics hub. But its neighboring cities are catching up fast.

"A lot of people say Hong Kong has many advantages as a finance hub and a logistics hub. Both are correct. But as you see, a city's long-term development does not solely rely on its present advantages. Will Hong Kong still have these advantages in 10 or 20 years," asked Cao Guoying (pictured), deputy director-general, department of educational, scientific and technological affairs, Liaison Office of The Central People's Government in Hong Kong.

Cao spoke about Hong Kong's potential in developing the cloud computing industry in a panel discussion, which followed the inauguration ceremony of the Hong Kong Cloud Standards Alliance held on April 12 at the Hong Kong Science and Technology Parks.

Hong Kong's advantage?

"With that many advantages in Inner Mongolia, I then ask myself, 'What is Hong Kong's advantage?'"

-- Cao Guoying, deputy director-general, dept of educational, scientific and technological affairs, Liaison Office of The Central People's Government in Hong Kong

"Many cities in Inner Mongolia are discussing the business opportunities of cloud computing, because they have abundant land, low labor cost and rich energy resources. With that many advantages in Inner Mongolia, I then ask myself, 'What is Hong Kong's advantage?'

"To develop the cloud computing industry in Hong Kong, what should it focus on to create new advantages? I think Hong Kong has an advantage in data processing," said Cao. "The city has very high service standards, a good legal system and the society is mature -- these build a very good foundation for Hong Kong to develop its data processing industry."

He urged Hong Kong to create added-value in the data processing industry in order to secure its position as the regional data processing center, and "this may become the next-generation advantage in Hong Kong."

China's state policy

Aiming to participate in selected China cloud computing projects, the Hong Kong Cloud Standards Alliance was urged to leverage Hong Kong's mature legal framework to provide trust for both local and greater China cloud users.

"China is paying 'great attention' to the development of the cloud computing industry," said Chen Wei, director of software service department, Ministry of Industry and Information Technology of the People’s Republic of China.

In October 2010, the State Council in China published a policy paper titled "Decision of the State Council on Accelerating the Fostering and Development of Strategic Emerging Industries (國務院關於加快培育和發展戰略性新興産業的決定)," which placed cloud computing as one of the core focus areas for new industries development.

MIIT's Chen says the software service department has completed the following tasks: 1) Created cloud computing pilot test beds and showcases in five cities: Beijing, Shanghai, Shenzhen, Wuxi and Hangzhou; 2) Sped up cloud computing research and development in support network, business models, virtualization technologies, big data management technologies, crucial cloud computing technologies and certain key products.

Law and ethics

China is facing two challenges in its development of the cloud computing industry, according to Zhao Xiaofan, chairman of China Software Industry Association.

"China laws concerning personal data protection and antitrust needs [further] development."

-- Zhao Xiaofan, chairman of China Software Industry Association

Zhao said: "The first challenge concerns law. In China, the progress of law [reform] is slow compared to that in Hong Kong. China laws concerning personal data protection and antitrust needs [further] development.

"As for standards, the newly drafted 'Personal Data Protection Guidelines for Public and Commercial Service Information Systems' is after all a standard only -- it is not law yet. To a certain degree this creates difficulties and obstacles when implementing cloud computing in China, as some users are puzzled by issues like personal data safety and security. [With the newly set up Hong Kong Cloud Standards Alliance,] I hope that Hong Kong and Guangzhou can conduct pilot tests in this area," he added.

"The second challenge concerns trust, this is particularly so in a corporate environment. Obviously law has a much higher status than trust, but when you talk about business ethics and regulations, trust is a key element in business activities. We all know that our economy is developing speedily, but the business credibility in Mainland China seems to be showing a downward tendency," said Zhao.

According to Chen, the next step for MIIT's software service department is to strengthen the standardization of important practices such as SOA (service oriented architecture), and to drive the adoption of international standards like ISO/IEC JTC1/SC 38 and SOA.

Story from http://www.asiacloudforum.com/content/chinese-government-official-cloud-hks-next-advantage?section=feature&utm_source=silverpop&utm_medium=newsletter&utm_campaign=northcloud

China pushing its own cloud aspirations

Trigger Networks — Tue, 17 Apr 2012 07:47:56 +0000

April 11, 2012

Google and others may be holding many of the cloud cards at the moment, but China could be about to grab some of them.

I believe the main the country’s leading IT company, ChinaSoft International, has embarked on a joint venture with the nation’s leading mobile phone manufacturer, Huawei.

The agreement between the two companies was signed on the 12^th January this year in order to develop and specialise in software outsourcing. ChinaSoft will hold 60% of the joint venture, while Huawei will keep just 40%, so it seems that the driver behind this is ChinaSoft.

Speaking with sys-con.com a spokesperson for ChinaSoft said: “The joint venture in Xi’an is a crucial stage in its Western China strategic plan. ChinaSoft International and Huawei will share the common goal to develop and manage the joint venture and look forward to the bright future.”

What exactly will result from all this is not exactly known. However, since the major company in the partnership is trying to encourage outsourcing this seems to imply both companies are looking at cloud computing as the way forward and not just software development.

If so, I have to agree. Google has managed to grow phenomenally by making use of cloud computing across Europe and North America in particular. So, ChinaSoft and Huawei may feel the same way about the huge Asian market available.

The question is will this new venture take on the likes of Google on its own turf, so to speak? With the way the Chinese economy is growing I wouldn’t be at all surprised.

Story from http://www.roketix.co.uk/2012/04/11/china-pushing-its-own-cloud-aspirations/4442.html

Chinese experts warn of information security risks

Trigger Networks — Mon, 16 Apr 2012 01:28:41 +0000

BEIJING - Chinese experts on Thursday warned of increasing loopholes in online safety as new technologies and applications pose fresh challenges to information security.

The adoption of technologies such as cloud computing, social networking and mobile computing devices has increased the level of risk that telecommunications operators face, said Xiong Sihao, an official with the Ministry of Industry and Information Technology.

A total of 6,249 mobile malicious software, or malware, were identified in 2011, more than double previous year's figure, according to a report by the National Computer Network Emergency Response Technical Team/Coordination Center of China.

Shen Changxiang, an academician from the Chinese Academy of Engineering, called for the establishment of a comprehensive Internet security system for better information protection.

By the end of 2011, China's Internet population had exceeded 500 million. By 2015, the nation will add nearly 200 million Internet users, bringing the Internet population to more than 700 million -- almost double the combined number of Internet users in Japan and the United States, according to a report by the Boston Consulting Group.

Story from http://europe.chinadaily.com.cn/business/2012-04/13/content_15043022.htm

China (Chongqing) International Cloud Computing Expo launches

Trigger Networks — Mon, 26 Mar 2012 06:20:30 +0000

China (Chongqing) International Cloud Computing Expo launched in Chongqing International Convention & Exhibition Center on March 22.

The Expo will mainly show the technology and products of cloud computing, and it will also establish a platform for exhibitions, exchanges and cooperations between the cloud computing industry and academic circles at home and abroad.

Meanwhile, the expo will push forward in-depth cooperations in the fields of cloud computing through communications and exchanges among industries and enterprises, according to Chongqing Mayor Huang Qifan.

The entire expo contains five zones respectively for cloud computing, terminal, communication network, application experience, and comprehensive exhibition, with a total area of 15,000 square meters.

Moreover, there are over 160 enterprise participants. They will offer a cloud computing exhibition closely related to daily life, such as “healthy cloud”, “smooth cloud”, “safe cloud”, “livable cloud” and “urban cloud”.

Story from http://www.thechinatimes.com/online/2012/03/2845.html

Cloud Computing a Priority for Most in China

Trigger Networks — Mon, 26 Mar 2012 06:18:59 +0000

Latest Cloud Maturity Index Shows Fast Growth in Acceptance

By Roger Strukhoff

Cloud computing is "a priority" for 87 percent of companies surveyed in China for the Cloud Maturity Index, a report produced by Forrester on behalf of WMware's Singapore office. This is twice the percentage reported only two years ago, according to WMware.

Additionally, 68 percent of respondents believe that virtualization is now among the top 10 core business applications, and 38 percent of large companies have already adopted some form of cloud computing.

Cost savings have traditionally been the primary focus of potential cloud adopters in China - something I've heard first-hand in speaking at cloud conferences and to managers throughout the country - but the new Cloud Maturity Index numbers show that "ease of application deployment" is now the top priority.

Concerns about data privacy are also top-of-mind, with 79 percent of respondents saying they will focus on private cloud solutions for storage, the highest percentage in the Asia Pacific region, according to VMware.

VMware's President of Greater China, David Sung, said the survey results showed that respondents "are looking to cloud computing with a deeper appreciation of the business benefits (than in the past.)

The total China IT spend (including telco) was US$250 billion in 2010, according to the World Bank, and was expected to see robust growth last year and into this year. This makes China the third-largest ICT market in the world, after the United States and Japan.

Story from http://www.sys-con.com/node/2218636

Latest Cloud Maturity Index Shows Fast Growth in Acceptance

By Roger Strukhoff

IDC: Cloud to create 9.6M new jobs in APAC

Trigger Networks — Thu, 08 Mar 2012 06:30:20 +0000

By Ryan Huang , ZDNet Asia on March 7, 2012 (1 day ago)

Cloud computing will create some 14 million new jobs worldwide by 2015, and half of those will be in China and India, a study commisioned by Microsoft and conducted by IDC forecasts. The research also found that IT innovation created by cloud computing could produce US$1.1 trillion a year in new business revenues.

According to Susan Hauser, corporate vice president of the worldwide enterprise and partner group at Microsoft, cloud computing will have a huge impact on job creation. "It's a transformative technology that will drive down costs, spur innovation, and open up new jobs and skillsets across the globe," she said in a statement.

The highest percentage of new jobs will occur in emerging markets, according to the study. The Asia-Pacific region will see a total of 9.6 million cloud-enabled jobs created between 2011 and 2015, of which 6.8 million of them will be in China and India.

John Gantz, senior vice president at IDC and author of the study, believes this can partly be attributed to the size of their workforces, and partly to the fact that many Chinese and Indian companies are not bound by large legacy system investments.

"We tend to think of China and India as emerging markets, but they're actually early adopters of the cloud," he said in the study. "They're not bound to existing systems. They've skipped that step, so there's less holding them back."

Most of the new jobs that will be created will go to large and small businesses, according to the IDC study. It noted that although small businesses make up the majority of employment in most parts of the world, they are generally less computerized.

IDC also expects small and midsize businesses (SMBs) to adopt cloud services faster than large companies, many of which are constrained by existing legacy investments. "So when you put it all together, the two trends balance out, and you get a 50-50 split," said Gantz.

The study found that the number of new jobs produced by cloud computing will be somewhat proportional to the size of each industry, but not entirely.

In some industries, such as professional services and retail, the high percentage of SMBs will drive up adoption. In other sectors, such as banking, security issues will slow the move to the public cloud, but may increase adoption of private IT cloud services.

Overall, three industries expected to generate the most cloud-related jobs are communications and media with 2.4 million, banking with 1.4 million, and discrete manufacturing with 1.3 million, the study showed.

Story from http://www.zdnetasia.com/idc-cloud-to-create-9-6m-new-jobs-in-apac-62304109.htm