2. Agenda
• China: Economy in transition
• Cloud Computing, an emerging technology
trend
• Key Technology Service Players in China
• Recommendations for Dell, capitalizing on
Cloud Computing in China
3. Economic Growth in China, the World’s
Largest Emerging Market
• GDP Growth- Last Six Years
• 2004: $1.97 trillion. The sixth largest economy in the world.
• 2005: $2.32 trillion
• 2006: $2.7 trillion
• 2007: $3.43 trillion
• 2008: $4.42 trillion
• 2009: $4.9 trillion
• 2010: $ 5.89 trillion. The world second largest economy.
• What is Next?
– Can the growth continue at the current 10% rate?
– Will China’s transition from a export driven economy to a
domestic consumption based economy provide a platform for
continued GDP expansion?
4. China’s Economy has been Export
Driven
• Leading exporter providing cheap goods to
the developed World.
• Large trade surplus
– Pre-Financial Crisis: Huge increase in Trade
Surplus
• 2004: $66.9 billion
• 2005: $101.9 billion
• 2008: $300 billion
– 2008 Financial Crisis: Negatively effected
exports. Two years after:
• 2010: $183.1 billion
5. China’s Economy is in Transition
• Infrastructure Investment in Urban Centers.
• Wealth Expansion through Real Estate
Investment
• Rising Yuan
• Growing Educated Urban Middle Class
• Domestic Consumer Based Economy is
Emerging
6. Infrastructure Investment is moving
into the Interior
• Urban Population: 700 million people and
growing
– Further expansion is needed to meet the demand of future
generations. Second and Third tier cities are being built.
• Megacities- Centers of Politics, business and
media. These cities are market leaders.
• Shanghai: Financial Center. The Wall Street of the East.
• Beijing: Political Capital. Heart of China.
• Guangzhou and Shenzhen: Pearl River Delta. Center of Chinese
Industry. Highest population density in China.
• Chongqing: Resource Rich and Heavy industry. The Wild West of
China.
• Chengdu: Western China. Expanding Industry base to provide access
to low cost labor and real estate.
7. Futuristic Cities
Shanghai, next Wall Street of
Asia.
Guangzhou, export
manufacturing center
Chongqing, a model for in-
land cities
8. Real Estate is Creating Personal Wealth
• Major indicator of Health of Chinese Economy
– Has been growing in the last few years.
– Much Chinese wealth is tied up in real estate market.
– Wealth Effect is driving consumption.
• Multi-Billion Dollar Asset Value
– Shanghai and Beijing: Heart of the Real Estate Boom
• Some three bedroom apartments are going for $1 million.
• Commercial Real-estate: sought after by many businesses.
– Would not invest in commercial real estate. Too much uncertainty of where it might go.
– Huge frenzy to grab land in China.
• Lots of borrowing and lending.
• Possible Real Estate Bubble
– Government is now raising interest rates and restricting access to
capital to restrict speculation
9. The Rise of the Yuan
• RMB vs. US Dollar
– Appreciation is trending @ 3-5% per year.
– Foreign countries are pushing China to let the Yuan rise
– Government is trying to balance relatively lower Yuan Positive
impact on export growth and contribution to domestic inflation
• Foreign Currency Reserves:
– $3 trillion. Having a hard time deploying cash.
• Export Products will become more expensive in the coming years.
• In the past it has been undervalued. Has made products cheaper for
the developed world.
– 1990’s: $1= 8.1RMB
– 2005: $1=6.5RMB
– 2011: $1=6.47. This is the highest it has been since 2004.
10. Next Generation Urban Middle Class
• Born after 1980.
– Ages 20’s-30’s: First generation to benefit from the growth
made by the older generation
– Lived under the new prosperity. Know nothing else
– Witnessed China develop its cities and economy
– What they do in the next 10 years will define the economic
success of China
• Large Talent Pool: 6.6 million college graduates in 2011.
– Job market is very competitive
– Tech-Savvy
– Brand Conscious
11. The Future Workers of China
Part of minority of lucky Chinese who graduate from
college. Are they ready to work? Does going abroad
make you more qualified?
12. China’s Consumer Based Economy is Emerging
Largest computer market.
442,000,000 internet users
886,300,000 cell phone users.
70,000,000 Registered cars
Spent $10,000,000,000 on Luxury Goods in China
and $50,000,000 ,000 abroad.
13. A Summary of New China
• China will continue to grow rapidly and at a faster rate
than the mature economies of the Americas and
Europe for the foreseeable future
• The growth of tier 2 and 3 in-land cities is becoming
the source for the next wave of growth.
• With a population of over a billion people the country
has a workforce to meet the demands of a global
market and to drive a consumption based domestic
economy.
• Implications for IT Services Business and Cloud
Computing is promising.
14. Agenda
• China, Economy in transition
• Cloud Computing, an emerging technology
trend
• Key Technology Service Players in China
• Recommendations for Dell, capitalizing on
Cloud Computing in China
15. Cloud Computing
• Clouds: Virtual Servers that provide an efficient way to transfer and
store data and applications.
– Benefits include lower cost with storage and computing flexibility
– Provides a variable consumptions and cost model for the customer
– Allows users to have access to remote data and applications
anywhere in the world
• Cloud Computing Models
– Public: Open to anyone. Shared network that allows for collaboration
of ideas
– Private: Personal network. Hosted in private data centers provided by
3rd party providers
– Hybrid: Combines public/private cloud with traditional IT
infrastructure provisioning( In house or Outsourced)
16. Cloud Computing in China is very new
and not well understood
• Information Technology market is still developing.
– Most still are focused on traditional in-house servers.
• Many companies are still learning. Need to be educated on
the benefits of updating IT infrastructure.
• Clouds computing is a new technology.
– Only a few organizations have adopted it.
– Government is the main leader in Cloud Computing.
– Large enterprises have also begun using it.
• Ex: Xiwang Group, Jiangsu Electric Power Company, China Ocean
Shipping Company
• Most Chinese organizations are waiting for more
information on Clouds.
– Don’t understand how Cloud Computing works.
17. Current State of Cloud Computing in
China
• Cloud technology is new.
– Not popular with local companies.
– There is very little knowledge of the technology.
– Could take many years for it to be known and accepted.
• Cooperation with the government is needed.
– It is a sign of approval in the eyes of Chinese companies.
– Government is helping test Cloud technology.
• Future usage is expected. As government and large private
enterprises adopt, smaller companies will follow.
– Security concerns need to be addressed.
– Data Privacy needs to be ensured.
18. Barriers to Cloud Computing Adoption
in China
• Government endorsement and partnership is
important.
• Cost of building data centers is expensive.
– IBM facility in Beijing will be done by 2016, a five year
project.
• Security and data privacy concerns most be
overcome.
– Internet services can be prone to hacking.
– Need to provide services that protect a client’s data.
19. Target Market in China
• Government Agencies: Many are using the technology or will be using in
the future.
– Success provides evidence that technology works.
– Government contracts insure success in China.
– Dealing with the government is different than in America.
• Need to know the right people.
• Willing to follow rules of the country.
• Major State Owned Enterprises: Corporate organization that have
relationships with the State.
– Can be a good reference to other companies.
– Second biggest market for updating IT infrastructure.
• Private Enterprise: Local companies are the key to success in China.
– Need to update IT infrastructure.
– Want to be more competetive and cut costs.
– Waiting for the right moment
20. Agenda
• China, Economy in transition
• Cloud Computing, an emerging technology
trend
• Key Technology Service Players in China
• Recommendations for Dell, capitalizing on
Cloud Computing in China
21. Technology Service Providers in China
• Foreign Firms- Leaders in Global Market.
– Large Multinationals.
• Chinese are brand oriented. They know companies like Dell, HP and
IBM. Want services from brand leaders.
– Have been moving into the Chinese market.
– Starting along the coast.
• Moving in-land to the untapped economy.
– Dominate competition in the Cloud Market.
• Local Chinese Firms- Growing role in IT industry. Are in their
infancy.
– Working with foreign firms.
– Creating partnerships with foreign firms.
– How will these partnerships develop?
23. • Overview
– Largest Information Technology Company in China.
– Have offices in every major city in China.
• “not a technology company but a company that uses technology to
solve problems”
– Innovative.
• Think outside the box. What is next?
– Look to the future. Grab market before others.
• “Global Technology Outlook”: It is about being ahead of the competition.
• Major player in Chinese IT market.
– Provide Hardware, Software and Services.
– Have connections with leading politicians and businesses in China.
Understand the importance of building connections. “Guanxi”
24. IBM on Cloud Computing
Position in China: One of the early movers
– Have been building data centers throughout China.
• Ex: They are helping Range Technology, Chinese software
company build a cloud computing center near Beijing.
• Looking to expand services in government sector.
– Beijing data center will be the largest in China.
• Will be completed in 2016.
– Provide services to Government agencies and private
industry.
• Have the trust of leading agencies and business
organizations
25. • Has been following the IBM path.
– Focus on Hardware, Software and Services.
• Trying to strengthen its software and services business.
– Moving away from consumer electronics.
– Margins for PC’s and printers are too low.
• Has been in China since early 1990’s under EDS.
– They have seen how the industry has changed.
– Information Technology Services goes back to pre-HP.
• Wants to be more competitive in China.
– Trying to diversify its various businesses.
– Create products and services that meet the needs of local
market
– Aspires to be an IBM alternative in Services.
26. HP on Cloud Computing
Growing interest in Cloud Computing: Concept is still
developing.
– Uses unique HP features and software. Only takes a few minutes
to set up.
• Able to create new networks.
– Big feature is the mobile capabilities Clouds provide. Access
anywhere with broadband internet connection.
– Want to help connect a company with their workers. “Global
Worker”
– Reduce consumption of energy. Green technology.
– Affordable. Does not cost much to create and implement.
– HP Cloud Consulting Services: Helps create a cloud network.
– Instant On Enterprise: Embeds technology into everything a
client does.
27. • Information Technology Consultants: Provide
advice and connections.
– Are not a hardware and software company. Sell own
services and other company products to clients.
– Might be less competitive in the future.
– Need others to create products.
• Accenture in Greater China
– Focus on outsourcing opportunities. Very aggressive.
• Provide IT help to local clients.
• Work with clients to develop strategies that give the
company an advantage in the local market.
• Seek employees who can tackle the challenges of China.
28. Accenture on Cloud Computing
Help implement Cloud Computing technology.
Do not create the software and hardware but
provide the service.
– Look at the technology as a form of outsourcing.
– Outsourcing component might be to companies
advantage.
• Business Process Utility: Allow a company to capture or
launch into the market quickly.
– Custom experience:
• Allow clients to build and maintain cloud.
• Deliver enabler. Speed up time and stay on budget.
29. • World’s largest software company.
– Has the capital to be competetive.
• Has been involved in China since the early 1990’s.
– Learned that experiences in America do not work.
– China is a different world. Expect different product:
Cheaper and fits the standards of the market.
• Needs to work with local industry.
• Has relationships with Chinese software companies.
– Has a strong relationship with Chinese Government.
• Uses relationship to advance the IT industry in China.
30. Microsoft on Cloud Computing
Cloud Computing is a new technology that the
company has been pushing.
– Microsoft Azure: Service through the internet.
Able to use Microsoft products with ease: Bing
– Does not require extensive IT infrastructure.
– Uses Microsoft oriented products.
• Very much a Microsoft product.
• Is being used by many Cloud Providers like Siemens and
HP.
31. • Business software and hardware company.
– Provides infrastructure for companies to succeed.
• Has been in China since the 1990’s
– Focused on helping make business in the region
more efficient.
– Very much a software company, now expanding
into hardware with the Sun acquisition
– Always trying to sell its own software. Cares only
about Oracle products.
32. Oracle on Cloud Computing
Has the ability to be competitative in the Cloud Market.
– New technology: Still is being tested to see what are the best
methods.
– Want to find how they can make their software more easily accessible.
– Focused on primarily Oracle products(hardware and software). Leaves
little room for others.
– Does not care about creating cloud network. Cares about creating a
network that changes the way Oracle applications are delivered.
Moving away from silo based model.
– Servers will still remain important feature of many companies
business.
– Most information will still be on servers.
Moving toward cloud based model.
– Sees it as the future. Finding ways to incorporate it into the system
33. • German Corporation
– Believes Cloud Computing is an important technology.
– Creates solutions tailored to industry specific requirements.
• Functionality and Security: Allow for greater communication in industry related topics.
• Cloud Computing: Form of Communication. Public oriented.
– Meant to improve content creation
– Allows for collaboration.
– Enables easy sharing no matter where in the world. Just need internet.
• Next three years it want to double market share of communication:
currently 7%
• In China:
– Siemens wants to enter second and third tier cities in the next few years.
– Believes there is a lot of potential in new cities. Newest emerging markets in
China.
34. Siemens on Cloud Computing
Cloud Computing: Form of Communication.
Public oriented.
– Meant to improve content creation.
– Seen as a way to better communicate.
– Allows for collaboration.
• Public clouds: With others in the Industry.
• Private Clouds: Allow for in-house debate.
– Enables easy sharing no matter where in the world.
Just need internet.
– Siemens is not a software company. Uses Microsoft
products.
35. • Hong Kong based Information Technology company
– IBM of China
– China focused.
– No presence abroad.
• Largest domestic provider of Information Technology services.
– Helps implement technology.
– Similar to Accenture. Consulting based.
– Provides a local perspective.
• Works with both foreign and Chinese companies.
• Has the potential to be a future leader in China.
– Due to loyalty of Chinese companies.
• No data available on Cloud Computing offerings.
36. Agenda
• China, Economy in transition
• Cloud Computing, an emerging technology
trend
• Key Players in China
• Recommendations for Dell capitalizing on
Cloud Computing in China
37. • Has the corporate structure similar to HP and IBM
– Provides Software, Hardware and Services.
• Should use these to be more competetive and on the same level as
major information technology companies.
– Brings over that same sense of cohesiveness to China.
• Market is still very open. Dell has the opportunity to be competetive
in the Chinese services market with Cloud as a new foundational
offering
• Cloud Computing is a strategic focus for Dell that would
provide a platform for gaining a leadership position in the
China market place.
• Has the brand name the Chinese know and trust
– Needs to further leverage the global reach of the
brand.
38. Recommendations for jump starting
cloud computing in China
• Cloud Computing is in its infancy in China. No one is a
market leader. Near term, Dell Services should:
– Create Cloud Strategy Consulting team to drive market
awareness and demand for Dell Cloud Computing Solutions.
• Also can provide valuable feedback loop from customers for strategy
refinement.
– Educate local companies.
• Provide information sessions for executives. Show them what others
are doing.
• Work with Clients to transition.
– Establish partnerships with local software/services companies.
– Target anchor customers (large public/private enterprise) to
build out cloud computing infrastructure
Editor's Notes
-No. 2 economy in the World. Ahead of Japan. Behind the United States. Future leader in global economy.
-Major exporter to the West/developed countries
-Market oriented economy that is focused on the private sector/ China wants to do business with the Western Companies
-Getting in first is important/ private sector is growing rapidly
-The last decade saw some of the largest economic growth in World History. Took only 30 years.
-What took many countries two hundred years to achieve, China did in thirty years.
-As markets grow it will be become harder to enter the market. The competition is already tight.
*Trade surplus: Rise shows that health of global economy is important to China. It brings greater benefits to those in China.
-2010: U.S. China trade gap is at $252 billion
-While the U.S. is a victim of Chinese imports, it’s still a leader in information technology, finance, consulting, and accounting.
-U.S. is still the standard that all developing and emerging countries follow.
-Population: 666 million/ from the Sixth National Census
High population density
-Megacities: Centers of politics, business and media. Are like any modern city.
Populations are in the tens of millions: Cities provide the greatest source for workers. As cities become more developed competition in the region will become harder. Each city represents a particular region of China.
Shanghai: 20 million people and a leader in the Asian financial sector. This region has seen a majority of the economic growth. Has the best market for workers.
Beijing: 20 million people and a center of business and politics. This region has many startups. Right now real estate is very expensive but being the capital of China it will always be a major destination.
Chongqing: In land China. Untapped region. Major industries are steel, cement, heavy manufacturing. Up and coming area, has seen much development in recent years.
Chengdu: Based in Sichuan. In the next 10 years it could become a business destination in central China.
Guangzhou and Shenzhen- Pearl River Delta. Economic hub in the South. The government wants to merge the nine cities in the region into one mega city with a population of over 40 million.
-China’s cities have become more developed in recent years.
Government is expanding development into tier two and three regions.
-Future of China is in the new megacities- Cities are being built and expanded throughout China to meet the demand of future Chinese.
-Cities more importantly provide new markets and source of work force.
The government wants 60% of the country to live in cities in the next twenty to thirty years.
China is building many new cities to house million resident
-These cities have been getting a lot of bad press lately. They are seen as “Ghost cities”. As the new middle class grows these cities could be hotspots for economic activity in regions that are currently untapped.
-Three of the biggest cities in China
Each is unique to their particular region.
Has population some of the largest populations in the World.
- They have lots of people to choose from/ diverse workforce
Real Estate in cites is becoming more expensive. This might be an example of a bubble. The current prices of real estate in major cities can not last forever. As of right now prices are on the rise. There are no bargains in the market. Housing market should be watched closely. It is a sign of how strong the Chinese economy is.
-Chinese Real Estate: Has become a major industry
2004: $119 billion
2007: $147 billion
2009: $210 billion
-Currency Valuation: RMB vs. U.S. Dollar
Dollar has more than six times its purchasing power in China.
Many products are cheaper in China. Some are comparable to U.S. prices. This is seen more in the luxury categories.
Get more for your money. Opening an office can be more affordable than staying in the States. Also China is an emerging market that has yet to reach level that is equal to the United States
The value of the RMB
The Chinese central government has been trying to keep RMB undervalued. This has made Chinese exports cheaper.
In 1990’s the Yuan was valued at $1=8.1RMB
In 2005, Chinese government began revaluing. It has stayed near 6.5
Right now it at 6.47RMB. This new valuation is the lowest it has been since 2004. The recent change is a sign that the Chinese Central Government does wish to continue its policies of revaluation.
Expect the revaluation of the Yuan to come slowly. The government wants to keep the rate of appreciation at 3-5% every year.
In addition, the government will allow the Yuan to be freely traded. This will further open the markets making competition in China much tougher. The government wants the Yuan to be more widely used internationally.
China has large foreign currency reserves that as of March are valued at $3 trillion. The government is having a hard time deploying the cash it has. This issue should be followed further because it presents an idea of what China’s intentions are for the Yuan and its role in the global economy.
Next Generation of Chinese
Lived under new prosperity
Ages 20’s-30’s
Those who are educated want to work
This group is a major part of the new economic growth. They are the first generation to make something.
Due to past history/ 40’s+ seem to be less educated
2011: 6.6 million college graduates
Large talent pool/ very competitive market
Ex: Some companies have only 1,500 spots. They get 30,000 applications.
Yet it can be hard to find quality workers.
Some have a hard time adjusting to working- expect to have world handed to them.
Lack work experience- for many after graduation is the first time they have a job/ lack of work experience
Lack basic skills such as teamwork and leadership
2010: Total number of Chinese Students abroad around the world reached 284,700/ results are from the Education ministry
These students are part of a special elite group. They have access to money that allows them to be educated outside of China. As the Yuan appreciates one should expect more Chinese students to study abroad. Recruiting these kinds of students will be helpful in creating a modern Chinese workforce that can tackle the important issues in both the West and China.
Elements of Cloud Computing:
1) Software as a service:
Application software for enterprise and private customers based on paper per consumption model.
Using multi tenant architecture.
2) Platform as a Service:
Runtime, development and test environment for Saas applications.
Allows for deployment of applications in quickly without the hindrance of large server network.
Joint usage by Saas vendors in Public Cloud.
3) Infrastructure as a Service:
Inexpensive data center services- storage, server, bandwidth- on a highly flexible delivery and billing model.
Using highly automated process landscape and virtualized data center= internet
Cloud Service is delivered through the internet.
4) Consult and Services:
Consulting on business and information technology. Advisory group who helps set up system.
Service desk.
Service integration.
Service bundling.
1. Public Cloud
Shared network
Used by multiple organizations.
Community that allows for collaboration. Public Forum.
Security of network is major issue that many have. How secure is the data?
2. Private Cloud
Personal network. Private.
Hosted in private data centers.
Can be outsourced to third party.
3. Hybrid Cloud
Allows for storage of non-sensitive data.
Must have an IT infrastructure that is flexible.
Allows resources to be stored in-house and externally.
Use public cloud to archive data
Maintain in-house storage for operational data
Most sophisticated cloud system. It allows a business to take advantage of scalability and cost effectiveness that a public cloud computing environment offers without exposing important applications and data to third-party vulnerabilities.
Cloud Services Market: China
Developing in Three phases:
Establish: by American internet pioneers: Amazon.com
Partnership: With consulting firms and provide infrastructure services to other companies entering the Saas market: Dell Services, Accenture, HP Enterprise Services
Broaden: Work with local companies who provide access to local market. Working with local software companies makes product more affordable and secure in local market. When local organization is involved other groups begin to trust.
China Cloud’s:
-Doing business in china requires cooperation with the government. Most clouds right now with government agencies and major Chinese companies.
- Smaller companies are still not sure about the technology. They want to makes sure the systems is secure and that data will not be seen by others.
-Data centers are now being built to meet the potential demand of the technology. ZTE and IBM are now building some of the largest in the world.
-Politically: Data centers will allow the government to track users and control content with more ease.
-Doing business in China sometimes requires one to put aside their beliefs. Need to follow the rules of China.
- Only a small number using it right now. Over the next two years many companies with be investigating, piloting, testing cloud systems. Still need time to adjust to the new technology. Silo based service network is still the dominant IT structure.
-Chinese businesses can turn to the cloud to become more efficient but right now most care about cost. Don’t care about speed of service.
-Industry is still being established=mostly by foreign companies. Chinese are limited to ventures between local authorities and foreign vendors.
*Chinese Companies: Not yet sure of cloud computing.
- Waiting for more results. How are others doing?
-Scared about security of the system. Don’t like to share data with others.
Client Issues: How is Cloud computing dealt with?
Security
Customer Audits- Testing clients system. What is at risk. What is sensitive.
Classify clients data as independent evaluator.
Reliability
Protection against disasters- natural and unnatural. System is still workable.
Insurance that data access continues on. New servers are up running in a few hours.
Compliance
Help choose least painful and most effective means for their industry.
Good evaluator who understands the technology.
Integration
Can be very smooth. Not a long process.
Help with large and small movies to cloud technology.
*Cloud Providers should understand that many clients don’t understand technology. Those who give the best service will get access to the best clients.
-Government is a leader.
- Have struck deals with IT companies.
- They like foreign companies but want them to partner with local software companies.
- The right partnership is needed. Should make sure that intellectual property is protected.
- Do not want local software company to steal ideas.
- How far are you willing to go?
- China is different. Rules might be different than in America. Need to understand how such a relationship can be beneficial and hurtful.
*Competition in China is mostly foreign, Fortune 500, tech companies. Need to be aggressive in China to survive.
-Local Firms are very small. Create partnerships with major foreign firms.
-The big firms have been in China since 1990’s.
IBM: Big Blue
*Major Player in China/ have many connections with China’s leaders- Political and Business- understand how to do bussiness in China.
-Focuses on software, hardware, data centers- consulting
Data Centers: provide a places to use cloud computing & access large amounts of data
“In House IT”: use array of cloud integration tools to get desired business capability
“Global technology outlook”: attempt to spot important trends early
Want to stay ahead/ grab market before everyone else
Providing technology/ expertise to Chinese companies building strategic partnerships: will grow overtime- some are just starting out
Ex: Range Technology –helping build data center in Beijing/ serve government departments
-doing business in China is about who you know & who you have relationships with
moving into Beijing market: want to turn area into high end information technology and services center
Hewlett Packard: Information Technology business has been about acquiring others. Though they have a history of being research based.
-Similar to IBM. Through various businesses it has access to new areas. Has been trying to strengthen its software and enterprise service businesses. New CEO Apotheker, former head of SAP has made it his objective to be competitive in China market. Leo Apotheker can’t seem to handle running a diverse company. Leader of a software company might be the problem:
-Need a more diverse background to handle a large company like HP.
-HP is becoming more a software and service oriented company. Looking to grab software and hardware business with others. No longer friends with Oracle. Fighting over hardware- 3PAR vs. Sun
*Companies who are in China are diversifying their businesses. The Chinese market can change in the blink of an eye. Staying ahead is important.
Ex: Services business is seen as future. Has strong outsourcing business due to EDS acquisition. Through EDS purchase, HP has service business in China that goes back to early 1990’s.
-HP has been had a growing interest in Cloud Computing. This is the case with most foreign technology companies in China. They are trying to build support from governments.
*Differences from other Clouds:
- Right now it seems that no company has a particular edge in the cloud market. The differences between clouds are very little. In the coming years companies who are invested in the development of clouds should create specific niches. Right now the only thing different is that companies are attaching their names to products and making it sound like it’s different from others.
- HP Cloud System: uses unique HP features- software and hardware. Promotes HP IT products.
- Big feature of the HP Cloud is its mobile capabilities.
- Web enabled allows clients to access data quickly.
- Reduce consumption of energy. Green Technology.
*HP sells the technology has beneficial to the environment
- HP Cloud Consulting Services: Helps create cloud network. Focus on increase productivity, improve competitiveness and deliver measurable results.
*Major Focus is that Clouds benefit global worker. It allows them to have access to data anywhere
“Instant on Enterprise”- Embeds technology into everything a client does. Objective is to provide better access.
HP Cloud Enterprise Service- Only takes a few minutes to set up. Set up is similar to other cloud networks.
Accenture: The Technology Consultants.
Does not manufacture hardware.
Helps implement.
Can this be seen as a negative?
Why would a client want to buy hardware and software from another company. Then get the services from them.
Consulting Company- Provides advice and connections to clients. Knows providers of software and hardware.
-Their advisory role keeps them from benefiting from other parts of the industry.
- They are organizers that can help with transitioning to new technologies.
- Accenture gives the same advice that other companies give: When reading their client prospectus one gets the same story.
1) Help make your system more efficient.
2) Look at the now and future. Help clients create a network
that is efficient. What else they do is hard to tell?
3) Focusing on high performance.
4) Develop different cloud networks- hybrid, public, and private.
-Pushing the Greater China business. Trying to show its importance my creating outsourcing opportunities.
Provide IT help to clients.
Work with Consults.
Seek employees who can tackle the challenges of China
- Accenture’s Use of Clouds: Custom Experience
Develop systems that allow clients to build and maintain clouds.
Delivery enabler who speeds the deliver process. Always on time and on budget.
- Business Process Utility.
Clouds are a form of outsourcing. Allow a company to capture or launch a new business quickly. It’s all about time and money.
*Clouds are part of the IT experience. They make a business more competitive and can make some business models obsolete. Accenture is big about making clients the first people to adopt the technology. Less technical and more business.
- Platform Clouds: Allow web conferencing, email, and team collaboration solutions. This technology is important feature for 21st century company. Communication between workers is important
Microsoft China: World’s largest software company.
Have been involved in China since early 1990’s.
Learned from experience that China is a different market that anywhere else.
Prices are not the same as in the West.
To be successful you need to be affordable and beneficial. Chinese have different standards.
Need to provide a service that is cheaper.
Collaborating with local industry is important for survival. No company can survive on its own in China.
Working with local software companies to make industry better.
Has worked with the Chinese Government to bring more attention and knowledge to information technology.
Microsoft software is the dominant operating system on computers in China.
Cloud Computing: “Microsoft Azure”
Helps bring IT experience together with 3rd Party vendors- accessible through internet.
Doesn’t require a fancy IT infrastructure. Only need broadband internet connection.
Able to access Microsoft products: Bing search engine- provides for a better experience.
Cloud Computing software is used by many vendors- ex. Siemens and HP.
How will Skype be used? - It has the potential to further allow online communication between businesses.
Oracle China: subsidiary of Oracle Corp.
Business software and hardware company.
Provide infrastructure that is business oriented.
Like many IT companies it has been in China since the 1990’s.
They are very competitive in China like back in United States.
Have infrastructure and vision to be leader in Cloud related technologies.
Oracle Paas Platform: Comprehensive portfolio of products to build an applications platform delivered as a public or private cloud service.
Based on Oracle grid technologies.
Oracle Software provides full experience
Paas Platform
Iaas
Saas
Trying to sell own products.
Don’t care about service.
Allows third party applications to be used.
Moving away from silo servers. Focus business more on cloud computing. See it as the future.
Siemens Enterprise: German Corporation
*next three years it wants to double market share of communication/ currently 7%
-Siemens Business Communication Systems
- Integrate Communications: phone, video and web conferencing
- Plans to move into second tier and third tier Chinese cities.
- These markets have lots of potential. More economic growth will be seen in these regions.
Strongly believe in the importance of Community Clouds-
Create solutions tailored to industry specific requirements.
Functionality and Security- allow for greater communication in industry related topics
Example: Media Cloud
Community oriented/ remote experience
Meant to improve content creation/ allow for . collaboration
Enables easy sharing no matter geographic location and organizational boundaries.
Web based “Microsoft Azure”- Goes outside enterprise boundaries. Is securely brought to respondent.
Digital China: Hong Kong based Information Technology Company
*Enterprise Market:
- Largest and strongest domestic provider of IT products
- has created partnerships with some of the leading international IT vendors
- Works with both foreign and Chinese companies
- Is an example of where Chinese companies can go in the future.
-Could be a real player in the future. Has lots of potential due to being a homegrown company.
- Has the loyalty of Chinese organizations in finance, telecommunications and government. Is a leading IT service provider. Provides clients with access to IT outsourcing.
-Chinese love brand names
-need to use Dell’s other positions in China.
- build on trust that people have for other Dell products.
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Cloud Computing is still new. It will take time for local market to get use to the technology.
- need to inform clients of the positives of Clouds. Getting existing clients interested will add to Dell’s reputation in Cloud Computing.
- Use Study groups to look at how it can be used in China- afforability, easeness to use, security of data.
