Seven Billion Policy Funds Inspire Cloud Computing Industry Growth

The policy supports the strength and speed of the cloud computing industry is obviously better than market expectations. In October last year, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the "Notice on Doing a Good Job in the Pilot Demonstration Work of Cloud Computing Service Innovation and Development", taking Beijing, Shanghai, Shenzhen, Hangzhou and Wuxi as the pilot demonstration cities. One year later, in October of this year, the first batch of nearly 700 million yuan to support the special funds for the cloud computing application demonstration project in the five areas of the Development and Reform Commission has been allocated.

At the same time, the "12th Five-Year Plan" of cloud computing led by the Ministry of Industry and Information Technology is also speeding up the process of preparation. According to informed sources, although the "12th Five-Year Plan" for cloud computing has only just begun, the Ministry of Industry hopes to speed up the process of preparation and hopes to join hands with the completed "12th Five-Year Plan" of the Internet of Things.

According to reports, the “Twelfth Five-Year Plan” for cloud computing under development will focus on encouraging the development of cloud computing application services and clearly establishing cloud computing data centers where resources and weather conditions are suitable, instead of being limited to the existing five pilot sites. The city also advocates financial support for cloud computing.

Service Providers Become the Largest Beneficiary The first batch of nearly 70 million yuan of special funds approved by the Development and Reform Commission to support 15 cloud computing demonstration projects in Beijing, Shanghai, Shenzhen, Hangzhou, and Wuxi have been allocated. Among the companies selected for the first batch of supporting funds, Lenovo, Baidu, Tencent, Alibaba, Teamsun Technology (600410), Huadong Computer (600850) and Kingdee Software shared the first funds.

According to informed sources, funds are concentrated in five pilot cities, and the financial support received by each short-listed company is relatively large. As the special funds for cloud computing support the cloud service field, Baidu and Alibaba.com have obtained greater financial support. Both companies have received more than 100 million yuan in funds. The remaining 10 short-listed companies have received support funds of 15 to 20 million yuan.

The source pointed out that from the point of view of obtaining funds, the cloud service providers for SMEs are more favored by the policy. It is understood that most of the companies that are shortlisted for the National Development and Reform Commission's special fund are Internet companies. The Kingdee Software, Teamsun, and East China Computers in the field of computer applications have also received financial support because their cloud services are more oriented toward SMEs.

Shanghai has a relatively high application threshold for companies that apply for cloud computing application demonstration projects. The main requirements are: The applicant should have a clear operating entity, and be successful in market-oriented operation. The business promotion model is clear, and a feasible plan is established. After the system service covers no less than 500 companies or 10,000 individual users; the cloud computing transformation demonstration project should have a typical cloud computing technology architecture, using server virtualization or desktop virtualization technology, after the completion of the system, the number of clients is not less than 100; application demonstration projects should be completed in the year and formally put into use.

The "12th Five-Year Plan" for cloud computing will also focus on supporting cloud computing services. According to an authoritative source, the draft "12th Five-Year Plan" for cloud computing has been formed and is being solicited from the Ministry of Industry and Information Technology. The cloud services encouraged in the draft include public cloud services represented by Baidu, e-government services and industry cloud services.

Or detonated the trillion industrial boom "funding or triggering the upsurge of cloud computing applications." Insiders pointed out that this year, "application" will be the main direction of cloud computing development, an urgent need to pass a number of leading and demonstrative industries Demonstration projects to promote industry applications.

It is understood that Beijing and Shanghai have respectively launched the "Cloud Plan" and "Yunhai Plan"; Shanghai has promoted the 2011-2013 action plan for building smart cities, and has also included cloud computing as one of its major projects; Shanghai has also released "Shanghai City." The Measures for the Implementation of the Financial Support Policies for Cloud Computing Industry Base" announced the establishment of a special support fund for the development of cloud computing industry. Shenzhen set up the Shenzhen Cloud Computing Industry, Research and Research Alliance in August this year and launched the “Xiaoyun Plan.” It is estimated that by 2015, Shenzhen will have 10 companies with annual sales revenue of over 1 billion yuan, which will drive the relevant industrial output value to exceed 100 billion yuan. Wuxi, Foshan, Hangzhou, and Chengdu also took the lead in initiating the construction of cloud computing infrastructure, cloud computing service platforms, and cloud computing industrial parks.

According to Orient Securities estimates, the scale of China's cloud computing industry chain may reach 750 to 1 trillion yuan in the next five years, which is expected to account for 15% of the output value of strategic emerging industries in 2015.

How to look for value-added services and explore profitable models is the core issue of whether cloud computing can be landed in China. The special funds allocated this time are only policy support funds. Leading companies and local governments need to raise funds according to the progress of demonstration projects. According to the statistics, one of the projects for targeted investment and issuance by Teamsun Tiancheng (600410) is the “Construction and Marketing Project of Information Fusion Service Platform under Cloud Computing Environment”.

However, the full promotion of cloud computing still needs time. There are short-listed companies that, due to the lack of industry standards, the cloud services provided by different vendors on the market are not the same, or even incompatible with each other. At the same time, enterprises still have some concerns when choosing cloud computing services, especially considering security. At present, most enterprises cannot deliver all their trust to service providers.

Tang Gang, director of the Resource Management Department of the Information Management Center of the Ministry of Industry and Information Technology, believes that the effectiveness of cloud computing applications will appear at the end of the “Twelfth Five-Year Plan”, while the large-scale application of cloud computing services will occur during the “Thirteenth Five-Year Plan” period. He believes that cloud computing is no doubt the direction of future industry applications, but currently there is no mature profit model in the country, and now the policy first, is expected to drive the company's R & D investment.