Cloud Competition

According to statistics from the China Academy of Information and Communications Technology, the market size of cloud computing in China hit 37.8 billion yuan (US$5.4b) in 2015 and a substantial increase is expected in 2016. Government agencies and financial organization are beginning to tap into the use of cloud services and, in addition to major Chinese IT giants including Alibaba, Baidu and Tencent, other IT enterprises, telecommunication providers and overseas capital are squaring off to seize a foothold in the market. Nevertheless, many cloud computing users remain wary of safety and reliability fears around cloud services and it will take years for cloud computing to completely transform the business landscape.