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Cloud Technology in China:
What Businesses

Need to Know

China’s cloud technology industry is expected to grow to US$103 billion by
2020 as companies continue to digitize their business data and internal
systems. The growing demand for cloud technology has led to both domestic
and foreign IT companies rolling out new cloud services for Chinese consumers
and businesses.

Data centres in China are not connected internationally as they are in nearly
every other country. Local laws and regulations in China create both unique
challenges and important considerations for businesses migrating and managing
cloud technology in the country.

Dezan Shira & Associates has conducted an internal review of cloud providers
in China and have partnered with Microsoft to offer a range of cloud-based
solutions. In this article, we outline key considerations when using cloud
technology in China.

What is the Cloud? Cloud Technology in China

In China, data centers that store and connect user

Cloud technology (also known data are ‘isolated’ from global networks. This means
as ‘cloud computing’) is when servers, that, though cloud-users outside of China can still
storage, databases, networking, software, and
analytics are hosted on the Internet and stored on communicate and collaborate with their China-based
large, privately owned data centers. colleagues, both must use separate user accounts
and thus cannot access company data from a
common source.

Instead of investing into physical hardware, businesses Similarly, companies headquartered outside
China can still manage China-based company
subscribe to these services and pay either oafmdaotnathanlydonruamnonbfuearl systems and data by using a Chinese user
fee. This fee is determined by the amount account. However, these users will experience
connection rates.
of users a business requires – making it easier for a company to

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online or in a physical data center. Despite these limitations, using the cloud

Using Cloud technology not only allows businesses remains a cost-effective way to scale operations
to save money on IT costs, it also keeps employees and increase productivity in China. As Thomas

around the world better connected with their Zhang, Dezan Shira & Associates’ IT Director,
colleagues, clients, and partners: an important explains, “Cloud technology has remained a
goal for foreign companies entering and relatively closed industry in China. While this can
expanding in Asia. create frustration for companies during the initial
setup and familiarization phase, it does not hinder the

overwhelming benefits of using the cloud.”

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