Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Trending in China: Macau Eases Travel Restrictions but Will Covid-19 Tests Kill People’s Travel Bug?
Alibaba Subsidiary Cainiao Pushes Into Malaysia With Cross-Border Delivery Service
Trending in China: School Throws Away Students’ Food Deliveries To Force Use of Canteen
Chinese Electric Carmaker Li Auto Teams Up With U.S. Chipmaker Nvidia
JD.com-Backed Recycling Operator Wanwu Xinsheng Nets Over $100m
HSBC Shares Fall to Lowest Since 2009 As Investors Fret About Financial Crimes Report
Huawei Cuts R&D Investment and Jobs in Australia Amid Tech War
Tencent’s Navigation App Plans to Add Taxi-Hailing Feature to Compete with Baidu Maps, Alibaba-Backed Amap
JD.com Healthcare Unit Plans Hong Kong IPO
Hong Kong-Headquartered Plant-Based Food Producer Green Monday Closes $70 Million Funding Round
China-focused IDG Capital in Market For New $550m Venture Fund
Students at a Xi’an University Scream Over Quarantine Conditions
Industrial Drone-Maker Jouav Navigates Tech Tensions With IPO Plans
Trending in China: Reality TV Goes Viral for All the Wrong Reasons as Star Picks Endangered Flower
Can Baidu Make ‘Traffic Jams a Thing of The Past’ and Turn Finances Around?
Will Beijing’s Crackdown on E-Commerce Illegal Sales Save Yangtze River Wildlife?
China-focused Northern Light Looks to Raise $375m for New VC Fund
China Looks to Overhaul State Health Insurance System
Gree’s E-Commerce ‘New Retail Strategy’ Goes From Strength to Strength as $175m Worth of Products Sold in Single Event
Trending in China – Clothing Company Picks Fight With Shaolin Kung Fu Monastery
China’s Cloud Services Market Grew 27.5% in First Half, IDC Reports

By Dave Yin / Oct 25, 2019 03:10 AM / Business & Tech

Photo: VCG

Photo: VCG

China’s cloud services market in the first half of 2019 expanded 27.5% to 5.58 billion yuan ($789 million), far surpassing the growth rate of information technology services overall, according to industry data tracker IDC.

China’s market will continue growing at an average rate of 27.3% through 2023, reaching 30.6 billion yuan, the market research group projected.

Setting up cloud services will generate the largest share of the market’s growth through 2023, followed by cloud development, migration and consulting, the researchers found.

According to the report, China’s cloud adoption rate in the first half was 12.2%. Of those, private cloud had the highest adoption rate, though still “shy of 20%,” IDC said.

The finance, telecom and public sectors had the highest demand for cloud services, the authors said.

“As finance and telecom clients upgrade their hardware and software, they’ll often consider setting up their own private cloud out of security considerations,” IDC said.

For now, China’s cloud market remains diversified, with the top 10 companies by market share accounting for 29.4% of the total in the first half, the report said. Huawei led the pack with 5.4%, followed by H3C, IBM, Inspur, Sugon and Accenture.

Despite the rapid growth, China’s cloud market is still immature, amounting to just 8% of the U.S. market’s size last year, according to a report earlier this month by the International Institute of Technology and Economy, a research group tied to China’s State Council.

According to that report, more than 90% of companies in industries such as transportation, logistics, finance, telecommunications, energy, manufacturing, governmental services and health care were not using cloud services.

“China’s progress in adopting cloud computing is far from complete, especially when it comes to the application layer,” IDC said. “In the coming years, companies will continue to have a ‘first to cloud’ strategy.”

Contact reporter Dave Yin (davidyin@caixin.com)

Related: China’s Fast-Growing Cloud Computing Sector Still Lags: Report

Share this article
Open WeChat and scan the QR code