Comment: China's cloud computing does not take the initiative but it has the advantage of late

Xu Yuyuan: Now General Manager of the Growth Enterprise Department of Dell Greater China, responsible for leading Dell's sales operations for SMEs in Greater China. He graduated from San Francisco State University and obtained three degrees in international finance, monetary finance, and real estate finance. He also obtained a master's degree in executive management (EMBA) from Tsinghua University in Beijing.

Although the development of cloud computing in China is hot, the existence of defects is also obvious - originality appears to be relatively weak.

U.S. cloud computing eco-industry data show that as of 2011, there have been countless companies in the United States that have invested in cloud computing SaaS, PaaS R&D. Among them, well-known companies have grown from about 130 in 2009 to nearly 200 now, and have covered almost all key areas of cloud computing. The development of cloud computing in China is still mostly concentrated on cloud platform operations and a small number of end-user applications. The service model is basically based on the IaaS level of cloud services.

Why is there such a big difference? The reason for this is worth thinking in the industry. We should see that innovation requires the environment. Compared with the United States’ innovative environment, there are still many gaps in the country. First, the United States has a huge talent pool. In the United States, there has long been a large pool of talented people. The protection and encouragement of talented individuals in society has created the most fundamental soil for innovation.

In China, the traditional exam-oriented education and the quick success of the society have led to a reduction in the innovation of the entire environment from colleges and universities to the corporate environment and business environment. As an example, we all know that virtualization is the key technology that enables the cloud to achieve scale effect, flexible operation, and smooth and long-distance access for end users. When our academic circle started the first round of virtualization concepts in the late 1990s. Virtualization has been proposed and developed in the United States for nearly 30 years. As far as virtualization is concerned, a complete original solution has not yet been formed in China.

However, China does not need to worry too much. If we interpret it from another perspective, this may be a good opportunity for China. We can use this advantage to cultivate our talents on the basis of existing technologies; at the same time, China’s special development trajectory and national conditions The huge market resources can be our advantages in attracting foreign talents and giving them greater innovation and practical market and space. This is undoubtedly the most attractive for overseas talents who are focused on technology.

Second, continuous innovation. The reason why innovation can continue in the United States is not only closely related to everyone's respect for innovation, but also depends on the protection of relevant laws and regulations. Without protection, we will appear as pirated DVDs in the development of cloud computing - lack of originality and plagiarism. If we do not respect cloud innovation from the beginning, it will inevitably directly affect the originality of our cloud platform. We can learn from the existing laws and regulations in foreign countries, discuss and formulate terms that are appropriate to China's national conditions, protect the intellectual property rights of innovative companies, and provide them with the strongest legal protection.

Again, sufficient funding is needed for support. The profit-driven nature of capital requires a quick return of investment, but the short-term benefits compared to long-term, sustainable benefits, the United States investment community seems to be more patient to develop and wait. In China, due to the structural limitations of VC and PE, most of them will not invest in projects that cannot be quickly recovered or listed in the short term, resulting in relatively weak investment capacity in medium and long-term projects. Therefore, we can consider China's national conditions, perhaps the third model beyond VC/PE.

Another factor comes from the government. Although the U.S. government is one of the largest customers of cloud services, it is the most vocal customer. Their huge annual IT expenditures and the pressure of being required to control costs have made cloud service providers rush.

In China, when we communicated with local government departments about cloud projects, we found that the angle that the government tends to focus on is still a little different from the nature of cloud services. For example, they would ask: “How many acres of land is needed for this project? How much? Funding? How much is the need for pipeline fees and broadband fees, with tens of thousands of racks?" If we push cloud computing as GDP, this is a completely wrong direction. This idea will cause most of the cloud computing centers to actually not attract end-user applications.

What is the solution? First, the government needs to play an important role in creating the environment. From industry, finance and academia, we will formulate an orderly cloud development planning framework; subdivide and support the cloud computing industry chain, go deep into every aspect, find ecological weaknesses, and target innovative innovations. To help the investment community to establish a financing platform that can provide medium and long-term, less pressure; and to use specific tax policies, financial policies to help SMEs use cloud services.

Secondly, investors should use the help of the government to select from the perspective of their own professional expertise a truly technological enterprise, give them sufficient financial support, and encourage them to focus on R&D in key technology areas. As the most important role in the cloud computing ecological chain, cloud technology companies should pay more attention to the company’s own technical fields, while cultivating internal strength, market-oriented, and innovating the road to product marketization; establishing industrial alliances to meet market needs Based on the innovative ideas to explore and formulate industry technical standards, and guide the development direction of cloud technology.

China has a huge potential in the cloud market. Although the development of cloud computing does not occupy the first chance, it enjoys the advantage of being behind. It is hoped that more and more people in China will join the team that promotes the development of the cloud, seize the opportunity of the third revolution of the IT industry, enhance the originality of China’s cloud computing, and write an innovative history for China’s future in the field of science and technology.

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