China Facts: AL in China has great prospects


China's cloud is different to that of Western firms in important ways. In China the cloud grew out of consumer services, including Taobao, Alibaba's e-commerce marketplace, and the online games offered by Tencent, the second biggest online firm. As a result, many cloud services are not yet ready for complex, mainstream corporate applications, however, as these services develop there is huge potential as IT of most Chinese companies is underdeveloped thus can jump directly to the cloud. Another divergence stems from regulation. Whereas in the West organisations such as government agencies and financial firms often share data centres with other customers, in China thre are separate "industry clouds". Banks, for instance, are encouraged to sign up for services provided by outfits such as CIB FinTech, a spin-off from China's Industrial Bank, because it reflects the latest regulations and makes things "more convenient" for regulators. 


*) The Economist 20th January 2018









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Hans Henrik Pontoppidan
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The views expressed of the authors do not necessarily represent or reflect the views of DCBF.