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 China goes the SaaS route

Published 6/30/2008 2:10:00 AM - Greater China

CIOs in China are realizing the benefits and global trends for software as a service in their enterprises.

As large enterprises start to change their business model to a more service-oriented focus, cloud computing or Software as a Service (SaaS) will help companies make this transition.  In fact, many financial and manufacturing companies have already introduced collaboration, real-time data streaming, social networks and web 2.0 applications in their business environment.  We are now seeing more Chinese companies starting to look at the next generation data centers and trying to bring cloud computing into their data centers.

On June 24, IBM hosted the opening ceremony for its Greater China Cloud Computing Center at its China Innovation Center in Beijing.  Having established its first Cloud Computing Center in China, in Wuxi (near Shanghai), in February this year, IBM is the only company to have two such centers in China.

In IBM’s vision, cloud computing is helping to foster the growth of new software companies in China.  Like many new software companies seeking growth opportunities both locally and abroad, these Chinese software companies will rely on technical infrastructures built on open standards and delivered as a service. This open approach to computing will help them deliver innovation and pursue global market opportunities.

With more software companies in the country developing business applications that cater to diverse needs of enterprises, cloud computing will help corporate customers to further leverage the latest technology to speed up its expansion in the country, and overseas.

The new SaaS or cloud computing concept is also a greener choice for Chinese companies as it promises to better utilize resources and therefore save energy.  In this age of high oil prices, the government is getting more concerned about the increasing energy consumption of IT equipment.  I therefore believe that the Chinese government will also encourage the transition to SaaS- indeed anything that helps control the ever-growing usage of energy in the fastest growing economy in the world, incidentally also ranked number 2 in the energy consumption list.

By Bryan Wang

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