Reaching China with Your Website & Cloud Applications

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With the world’s largest and fastest growing online population, China continues to attract global online businesses of all industries. The Chinese market offers vast revenue opportunities and growth, but companies must overcome a magnitude of technical and regulatory challenges to effectively reach online users in China. Internet censorship, unreliable infrastructure, and complex web content licensing requirements make it difficult to effectively deliver websites and cloud applications into China.

In this webinar, CDNetworks and guest speaker Forrester Research, Inc. will discuss the overall opportunities presented by the China web market and explore the various web performance and regulatory challenges companies must overcome to effectively deliver web content and applications within the Great Firewall. The webinar will also provide insights on overcoming common performance challenges and fulfilling Chinese regulatory requirements mandated by the Ministry of Industry and Information Technology (MIIT) and the China Internet Network Information Center (CNNIC).

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  • http://www.techinasia.com/china-ecommerce-242-million-online-shoppers-2013-stats/Looking at these numbers it’s surprising that brands haven’t made China the number 1 priority
  • Japan and South Korea are scored highly as a result of existing infrastructure (access to internet and fulfillment capabilities) and vendor investment in eCommerce in addition to the high digital sophistication of shoppers in this market. The Retail index measures:Consumer pillar. This pillar measures the sophistication level of consumers' behavior to adopt online purchasing. This comprises variables such as online tenure and usage of different payment types.Vendor pillar. This pillar measures company adoption and industry development to adopt Internet retailing. Some variables from this pillar include fragmentation of Internet retailing and percent of businesses selling online.Infrastructure pillar. This pillar measures the overall economic and technological advancement within a country and includes factors such as broadband penetration, urban population, and parcel volume per capita.Retail opportunity pillar. This pillar measures the potential retail dollar volume. It is calculated using the potential near-term retail sales and the percent of population buying online.
  • Note for Kelland: Some estimates put that at a 38% site abandonment rate
  • eBusiness professionals must carefully evaluate the tradeoff between site performance and localized preferences in Asian markets.
  • The rule-of-thumb for a single object performance is ~0.1 sec latency
  • China has 6 major ISPs, but peering between networks is limited which causes lag times even in country
  • CDN providers can also cache dynamic page content such as personalized product results and product pages.
  • Load time increases as distance increases between the origin and the end user
  • Load time increases as distance increases between the origin and the end user
  • What are the options to improve web content delivery within China? There are three options…
  • Give a brief intro as to whoCDNetworks is and our experience in helping global enterprises improve performance within the Great Firewall and effectively reach end users.
  • Faster site = more revenueThis proven technology reduces the number of data round-trips necessary to complete an internet-based trade request, thus accelerating performance & virtually eliminating a bad user experience due to latency.
  • Performance testing on CDNetworks’ Global CDN
  • Reaching China with Your Website & Cloud Applications

    1. 1. Demystifying China Online Reaching China with Your Website and Cloud Applications Presented by Sponsored by: Featuring:
    2. 2. The Opportunities Opportunities
    3. 3. China is home to the world’s largest online population
    4. 4. © 2013 Forrester Research, Inc. Reproduction Prohibited By 2015 more than 700 million Chinese will have regular access to the internet
    5. 5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5 The numbers in China far exceed those of other mature eCom markets
    6. 6. There are more internet users in China than there are people in the US
    7. 7. © 2013 Forrester Research, Inc. Reproduction Prohibited Similar to other markets with high internet penetration, the online population in China is very social on the internet
    8. 8. • Beijing • Chengdu • Dalian • Guangzhou • Nanjing • Ningbo • Shanghai • Shenyang • Suzhou • Wuhan • Wuxi • Xian Metro China cities surveyed: The majority of the population has access to the internet - and uses it
    9. 9. © 2013 Forrester Research, Inc. Reproduction Prohibited Online shopping behavior in China is unprecedented for an emerging market
    10. 10. Projected Online Retail Sales For 2013 And 2017: The US And China Lead eCommerce
    11. 11. Forecast: Online Retail Spending In China (B2C And C2C), 2012 To 2018
    12. 12. © 2013 Forrester Research, Inc. Reproduction Prohibited eCommerce Readiness Index Ranks China as #2
    13. 13. © 2013 Forrester Research, Inc. Reproduction Prohibited Mobile is a key touch point
    14. 14. Challenges
    15. 15. Forrester’s clients say about doing business in China… Operational challenges are not intuitive Laws/regulations are difficult to navigate and constantly evolving Local expertise is difficult to acquire You need local relationship to survive China needs to be treated as a separate entity – not as an expansion of existing business
    16. 16. The “Great Firewall of China” creates unique problems › Router blocks: • 97% of international routers are blocked • 3% of internal routers are blocked › Preferential treatment from agency to agency • Grounds for blocking are inconsistent and subjective • Some blocks are temporary or due to internal agency mistakes › All domains are subject to being blocked • Over 2,500 foreign domains are blocked in China – including some of the biggest and most used in the U.S. including Facebook and Twitter › Lag in load time • Loading a non-Chinese hosted webpage takes an additional 10-15 seconds when accessed in China
    17. 17. © 2013 Forrester Research, Inc. Reproduction Prohibited 17 Response time in China is far slower than that in other markets
    18. 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 Online consumers prefer link saturated sites
    19. 19. Web content hosted outside of China often has performance challenges TCP/IP round trip time Http round trip time (for a single object) Firewall filtering Response time for a single object Response time for a typical web page Between China and US/Europe (measured on a single object) 600MS 2,000 – 3,000 MS 450 MS ~3 seconds 20-30 seconds Your users in China will feel the pain!
    20. 20. Southern China: Telecom territory Northern China: Unicom territory The great divide between the north and the south …
    21. 21. Source: China Internet Network Information Center (CNNIC) Nearly 50% of internet users in China are in rural areas where the internet connection is unreliable and processing times are extremely slow
    22. 22. Licensing requirements can be a barrier to entry when hosting a website in China › Beian (Record Bureau) & Gongan (Public Security Bureau) Licenses • Required for all websites hosted and delivering from within the Great Firewall › Internet Content Provider (ICP) License • Required for all websites with a shopping cart › Additional licenses may be required for: • Education • Healthcare • News/media • Pharmaceutical
    23. 23. In the case of Uniqlo, the holding company and the flagship site also had to be registered on the ICP license
    24. 24. Some content is easier to host in China than others Content Type Likelihood to be blocked Adult/pornography Forbidden Gambling Forbidden Political Forbidden Anti-government Forbidden Religious High User-generated (SNS, BBS, blog, sharing) High News High Gaming Medium Entertainment Medium Software Low Enterprise Low e-Commerce Low
    25. 25. Option #1: Move content closer to the greater China area Hong Kong and Singapore are two common hosting locations
    26. 26. Content distribution speeds with content closer to China Http round trip time (for a single object) Firewall filtering Total delay (for a single object) With direct peering connection to all three major ISPs in mainland 100 MS 450 MS 550 MS No direct peering connection 300 MS 450 MS 700 – 800 MS The limiting factor with this option is poor connectivity and firewall filtering
    27. 27. Challenges with hosting close to China, but outside of China › Choosing a hosting provider can be tricky › The great firewall blocks IP › Sites hosted on the same server (or same IP block) as questionable content will also be blocked
    28. 28. Option #2:Host content in Mainland China
    29. 29. Southern China: Telecom territory Northern China: Unicom territory The great divide between the north and the south requires mirrored sites The sparse bandwidth between the south and the north means you need mirrored sites in both territories
    30. 30. Setting up websites in China is a complex operation › Businesses must apply for a government-issued license - licenses vary for each type of site › The rules for obtaining licenses are confusing and procedures unclear › Rules and regulations for obtaining a license change frequently › Licenses takes longer to acquire and are under more scrutiny for western brands › Local operation requirements
    31. 31. Option #3: Hosting externally with a CDN within China Geographic coverage is key
    32. 32. Using a CDN significantly reduces delivery time Don’t do anything Hosting close to China Hosting in China With CDN acceleration User performance 3 seconds (for a single object) 450 MS 10 – 300 MS 30 MS Efforts involved Easy Medium: Finding a good hosting provider can be challenging High: Business must do everything. Finding a hosting provider, applying for licenses and keeping up with regulations Easy to Medium: CDN partner manages licenses and regulations ROI Time Frame N/A – will see little incremental growth Slow Medium Fast
    33. 33. Criteria to choosing a CDN partner in China › Local coverage • Being able to deal with the north-south divide • Deliver good performance all over China › Local know-how and expertise • Knowing how to deal with the evolving regulation landscape in China • Manage regulatory compliance for you › Local relationships • Good relationship with local ISPs and network peering points
    34. 34. Criteria to choosing a right CDN partner in China › Global operations • The ability to deliver content in and out of China › Global know-how • A mature business that knows how to do business with multi-national companies › Global management • Let you have a global understanding of how your web content is being delivered › Mobile optimization • Help optimize the payload sent over the network by compressing images and page structure based on current network conditions (e.g., 3G versus 4G), thus helping the slow lane go as fast as possible.
    35. 35. Global Content Delivery Network • Accelerating over 40,000 sites across 140+ PoPs around the globe • Only Global CDN with a presence inside of Mainland China (25 PoPs) • Integrated solutions: Performance, Security and Scalability • Industry leaders in reaching emerging markets
    36. 36. Great Firewall – Slower Websites 40% slower download time 64kB object downloaded from Test agents inside of China • Guangzhou (inside China) • Hong Kong (outside China) Source: NetworkBench results, Sep. 2012
    37. 37. Distance = Latency Downloadtime(sec) 0 10 20 30 40 50 60 70 80 London Paris Geneva Frankfurt Oslo Madrid Milan Istanbul NewYork NewDelhi LosAngeles SaoPaulo Tokyo Sydney Seoul KualaLumpur BuenosAires Taipei Chengdu HongKong Beijing Guangzhou Singapore Xian Site performance degrades as distance increases Source: Source: CDNetworks network monitoring POP latencies, 2012
    38. 38. Also found increasing load time of the page from 400ms to 900ms – led to 25% reduction in traffic Why Does it All Matter? Faster Sites Perform Better Found a 100ms of delay reduced revenue by 1% Found that speeding up their website by 5 seconds increased their conversion rates by 7-12% and doubled # of visitors from search engine traffic 0 10 20 30 40 50 60 70 80 90 100 TBs Social Gaming Customer Go-Live: Feb. 2012 3.7x traffic in 6 months Source: Source: CDNetworks Performance Monitoring, 2012
    39. 39. The Options… Add more Datacenters • Attempt to get close to end-users • Expensive • Complex • Sync problem • Doesn’t solve performance issue 1 HW Appliances • Expensive • Need IT team • No support for remote end users 2 Traditional CDN • Only focused on caching • Doesn’t support client-server apps 3 ADCWOC WOC Cache Cacheable Non-cacheable
    40. 40. Get Faster and More Reliable Web Performance in China
    41. 41. CDNetworks Presence In China 25 Points of Presence (PoPs) In-Country Experts • Content • Licensing • Regulations End to End Reach • Bypass unstable peering between local ISPs Superior Performance • Speed, Security and Reliability
    42. 42. China Acceleration • Creates a ‘Fast Secure Tunnel’ over the Internet • Quickly deliver websites & applications globally to and from China • No CAPEX for Hardware / Software • In-country experts – licensing requirements, regulations, & monitoring • Fully integrated and managed services
    43. 43. China Acceleration
    44. 44. Result: Bally Reduces Load Time By 81% Improving Online Shopping Experience in China Opportunity: 27% of all luxury goods are consumed by Chinese Shoppers. By 2015, they will account for 35% of all luxury goods sold. Challenges Bally launches bally.cn in 2011: • Required optimization to comply with local regulations • Rich media resulted in poor web performance • Spotty in-country peering increased website latency
    45. 45. 末(end) www.uschina.org www.cdnetworks.com www.forrester.com

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