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Cloud computing in China - statistics & facts

Cloud computing utilizes the remote data centers available for users to store, access and process data over network, which significantly reduce the computing burden on the users' computers and allow the mobility and flexibility of the work. The technology is being rapidly developed in various sector and is already generating over five billion dollars in revenue annually. Generally three main type of business models available for cloud computing include Software as a Service (Saas), Platform as a Service (Paas) and Infrastructure as a Service (Iaas). Meanwhile, data can be stored from public cloud, private cloud and hybrid cloud, where the private cloud has higher workload for enterprises on average currently. China was estimated to spend almost 13 billion U. S. dollars on public cloud services in 2019, the highest among countries in the Asia Pacific region.

Typically, Saas segment dominates the cloud computing market in countries like United States for example, but this is not the case for China. IaaS accounts for almost double of the Saas segment at around 61 percent of the Chinese market. The Iaas market size was estimated to exceed 69 billion yuan in 2021, with Alibaba Cloud being the biggest market player generating over one billion U.S. dollars of revenue in China in 2017. Being the second biggest segment in the market, Saas's market size grew from almost 3.5 billion yuan in 2013 to over 15 billion in 2017 in China. Regarding the Paas market in China, the market size doubled in size from 2016 to 2017 and was forecasted to reach 13.5 billion yuan in 2021.

Some major upsides companies have experienced by using cloud computing technologies in China were improved efficiency of IT operations and reduced workload of IT maintenance, while a vast majority of such companies reported saving of IT expenses. Given the benefits brought by switching to cloud applications, increasing amount of companies has started the process. Around 34 percent of the companies in China were still not applying cloud computing in 2019, while over 40 percent had been utilizing public cloud applications. Among all the industries in China, manufacturing and finance sector were the two with the highest penetration rate of Saas, at over ten percent in 2018. With home office getting more and more common as a global phenomenon because of the coronavirus, the future of cloud computing seemed promising.

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Cloud computing in China

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