Page 400 - 2019 White Paper on the Business Environment in China
P. 400
9 White Paper on the Business Environment in China
remotely and prescribe medicine. Collaborations with the offering, including performance characteristics such
a third party (including commercial entities) to provide as price, agility, and service breadth. In 2018 the market
e-diagnostic clinical service or form e-hospitals require will grow a healthy 21 percent up from US$145.3 billion in
a written collaboration agreement reviewed by the local 2017. Infrastructure as a service (IaaS) will be the fastest-
healthcare regulator (Chen and Balzano). growing segment of the market, forecasted to grow by
27.6 percent in 2019 to reach US$39.5 billion, up from
According to the official website, China will greenlight US$31billion in 2018. By 2022, 90 percent of enterprises
medical institutions to conduct internet medical services purchasing public cloud IaaS will do so from an integrated
as part of a broader push to promote Internet Plus IaaS and Platform-as-a-Service (PaaS), and will use both
healthcare. Medical institutions will be allowed to provide the IaaS and PaaS capabilities from that provider. Long-
online diagnostic services for some common and chronic term, spending on off-premises cloud IT infrastructure
diseases in patients’ follow-up visits to their doctors, will grow at a five-year compound annual growth rate
according to a decision at the meeting. The top two (CAGR) of 10.8 percent, reaching US$55.7 billion. Roughly
levels of hospitals within the country’s three-tier hospital 28 percent of spending within key enterprise IT markets
system will be encouraged to provide online services, will shift to the cloud by 2022, up from 19 percent in 2018.
including consultation, reservation and test result inquiry.
“The development of Internet Plus healthcare is a major The largest cloud shift before 2018 occurred in
initiative to enhance our country’s public health services. application software, particularly driven by customer
It will also help facilitate overall economic and social relationship management (CRM) software. CRM
development,” Premier Li said. “As China joins the ranks of has already reached a tipping point where a higher
middle-income countries, the demand for health services proportion of spending occurs in the cloud than in
has increased substantially. Internet Plus healthcare can traditional software. The market is expected to achieve a
help alleviate the problem of inaccessible and expensive five-year compound annual growth rate (CAGR) of 21.9
public health services that have long been a big concern percent with public cloud services spending totaling
for the general public,” he said. According to the Healthy US$277 billion in 2021. The industries that are forecast
China 2030 Blueprint released by the Party Central to spend the most on public cloud services in 2018
Committee and the State Council in 2016, efforts will be are discrete manufacturing (US$19.7B), professional
made to foster new industries, new forms and models services (US$18.1 billion), and banking (US$16.7 billion).
of business in the health sector and to develop internet- The process manufacturing and retail industries are
based health services. The review for health insurance will also expected to spend more than US$10 billion each
be vigorously applied, and the one-stop settlement will on public cloud services in 2018. These five industries
be brought forward. The real-time sharing of prescription will remain at the top in 2021 due to their continued
and drug retail sales within medical institutions will be investment in public cloud solutions. The industries that
explored. The system of Internet Plus healthcare standards will see the fastest spending growth over the five-year
will be further refined. The inter-connectivity and sharing forecast period are professional services (24.4 percent
of medical information will be accelerated, and the quality CAGR), telecom (23.3 percent CAGR), and banking (23.0
supervision of medical services and information security percent CAGR) (Columbus).
will be strengthened (Xu).
Cybersecurity
Cloud Computing
The Cybersecurity Law of the People’s Republic of
Cloud computing platforms and applications are China (“the Cybersecurity Law” or “the Law”) officially
proliferating across enterprises today, serving as the IT came into force on June 1, 2017. The Law and its rules
infrastructure driving new digital businesses. Financial have been in the center of international discussion
Services have progressed the furthest to advanced cloud ever since. The Cybersecurity Law is a milestone for
maturity beyond virtualization and basic cloud compared cybersecurity legislation in mainland China and serves as
to insurance and healthcare. True Private Cloud TPC a “Basic Law” in its field. The Law is an evolution of the
growth will far outpace the infrastructure-as-a-service previously existent cybersecurity rules and regulations
(IaaS) growth of 15.2 percent over the same period. A from various levels and fields, assimilating them to create
“true private cloud”is distinguished from a ”private cloud” a structured law at the macro-level. The Law also offers
by the completeness of the integration of all aspects of principle norms on certain issues that are not immediately
400
remotely and prescribe medicine. Collaborations with the offering, including performance characteristics such
a third party (including commercial entities) to provide as price, agility, and service breadth. In 2018 the market
e-diagnostic clinical service or form e-hospitals require will grow a healthy 21 percent up from US$145.3 billion in
a written collaboration agreement reviewed by the local 2017. Infrastructure as a service (IaaS) will be the fastest-
healthcare regulator (Chen and Balzano). growing segment of the market, forecasted to grow by
27.6 percent in 2019 to reach US$39.5 billion, up from
According to the official website, China will greenlight US$31billion in 2018. By 2022, 90 percent of enterprises
medical institutions to conduct internet medical services purchasing public cloud IaaS will do so from an integrated
as part of a broader push to promote Internet Plus IaaS and Platform-as-a-Service (PaaS), and will use both
healthcare. Medical institutions will be allowed to provide the IaaS and PaaS capabilities from that provider. Long-
online diagnostic services for some common and chronic term, spending on off-premises cloud IT infrastructure
diseases in patients’ follow-up visits to their doctors, will grow at a five-year compound annual growth rate
according to a decision at the meeting. The top two (CAGR) of 10.8 percent, reaching US$55.7 billion. Roughly
levels of hospitals within the country’s three-tier hospital 28 percent of spending within key enterprise IT markets
system will be encouraged to provide online services, will shift to the cloud by 2022, up from 19 percent in 2018.
including consultation, reservation and test result inquiry.
“The development of Internet Plus healthcare is a major The largest cloud shift before 2018 occurred in
initiative to enhance our country’s public health services. application software, particularly driven by customer
It will also help facilitate overall economic and social relationship management (CRM) software. CRM
development,” Premier Li said. “As China joins the ranks of has already reached a tipping point where a higher
middle-income countries, the demand for health services proportion of spending occurs in the cloud than in
has increased substantially. Internet Plus healthcare can traditional software. The market is expected to achieve a
help alleviate the problem of inaccessible and expensive five-year compound annual growth rate (CAGR) of 21.9
public health services that have long been a big concern percent with public cloud services spending totaling
for the general public,” he said. According to the Healthy US$277 billion in 2021. The industries that are forecast
China 2030 Blueprint released by the Party Central to spend the most on public cloud services in 2018
Committee and the State Council in 2016, efforts will be are discrete manufacturing (US$19.7B), professional
made to foster new industries, new forms and models services (US$18.1 billion), and banking (US$16.7 billion).
of business in the health sector and to develop internet- The process manufacturing and retail industries are
based health services. The review for health insurance will also expected to spend more than US$10 billion each
be vigorously applied, and the one-stop settlement will on public cloud services in 2018. These five industries
be brought forward. The real-time sharing of prescription will remain at the top in 2021 due to their continued
and drug retail sales within medical institutions will be investment in public cloud solutions. The industries that
explored. The system of Internet Plus healthcare standards will see the fastest spending growth over the five-year
will be further refined. The inter-connectivity and sharing forecast period are professional services (24.4 percent
of medical information will be accelerated, and the quality CAGR), telecom (23.3 percent CAGR), and banking (23.0
supervision of medical services and information security percent CAGR) (Columbus).
will be strengthened (Xu).
Cybersecurity
Cloud Computing
The Cybersecurity Law of the People’s Republic of
Cloud computing platforms and applications are China (“the Cybersecurity Law” or “the Law”) officially
proliferating across enterprises today, serving as the IT came into force on June 1, 2017. The Law and its rules
infrastructure driving new digital businesses. Financial have been in the center of international discussion
Services have progressed the furthest to advanced cloud ever since. The Cybersecurity Law is a milestone for
maturity beyond virtualization and basic cloud compared cybersecurity legislation in mainland China and serves as
to insurance and healthcare. True Private Cloud TPC a “Basic Law” in its field. The Law is an evolution of the
growth will far outpace the infrastructure-as-a-service previously existent cybersecurity rules and regulations
(IaaS) growth of 15.2 percent over the same period. A from various levels and fields, assimilating them to create
“true private cloud”is distinguished from a ”private cloud” a structured law at the macro-level. The Law also offers
by the completeness of the integration of all aspects of principle norms on certain issues that are not immediately
400
