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5 Key Challenges To Cloud Computing In China

Cloud Computing key Challenges in China

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5 Key Challenges To Cloud

Computing In China

1. Data centers results in huge power consumption upto the limit

of around 5% of the total consumption in China. To set up data

centers for Cloud Computing, power generation and distribution

has to be very essential across the provinces. China is still a

laggard in this area

2. “Cloud Computing” use is not classified as on till date in China.

This is still considered as a VATS (Value Added Telecommunication

Service ). Chinese Government is still not clear about licensing

process for using Cloud Computing. The Cloud Computing

Provider have to secure a license, if falls under the provision of

Internet Data Center (IDC) services. If the cloud services do not fall

under 2003 Classification Catalogue , then just have to file and

record the case with the provincial counterparts of the Ministry of

Industrial and Information Technology ( MIIT). There is no defined

and specific procedure to file and record. In gist. Licensing and

government permit delays for Cloud Computing Service Providers

3. Government restrictions on foreign investment in Cloud

Computing services. Under 2003 Classification Catalogue, Cloud

Computing was considered as an allied service to telecom industry

and ,so, provisioned under IDC licenses. Foreign Cloud Service

providers have to establish a FTE (Foreign Investment Telecom

Enterprise ) in China and foreign investment should not exceed 50%

and the registered capital should be more than 10 million RMB or

1.6 million USD. The entity should be a joint venture between a

Chinese and the foreign firm. Besides, that there are dozen of

approvals, licenses and verification processes for the foreign

investor o set up a joint venture with a local company. Practically,

the establishment of FITE is restricted in China. A major challenge

to the growth and survival of Cloud Computing in China

4. Very high Capex requirement for Cloud Service Providers for

setting up data centers in China. Setting up data centers attracts

higher customized solution for power consumption and

distribution. Making bandwidth available across provinces also

need high Capex in laying fibre cables.

5. Data security in Cloud is more vulnerable than the data in on

premise IT environment. Cloud Computing architecture supports

computing concepts and technologies like Service Oriented

Architecture (SOA), Web 2.0, Virtualization and other technologies

which are dependant on internet. These concepts and technologies

have their own security issues which are been inherited by Cloud.

After, the Edward Snowden allegation on US Government for

snooping on Chinese information, the Chinese Government has

become more stringent on exposing its information and data centers

to Cloud environment.

Exelanz, LLC

[email protected]

Phone: (860) 677-8883

Exelanz, LLC, an IT managed services company based in NY,

USA. Besides, Exelanz is a key Cloud Infrastructure

Management company having noteworthy experiences in serving

Chinese Clients. Exelanz, has partnered with a local Chinese

company to comply with Chinese IT vendor regulations