China's Internet Data Centers Poised
For Better Service Offerings August 29,
China's Internet Data Center (IDC) revenues in
1H 2008 reached 3.51 billion Yuan, and CCID Consulting projects revenues at
the end of 2008 to reach 5.76 billion Yuan. Seeking developmental standards
was the theme in 1H08.
consulting, July 2008
Small and medium sized IDC service providers were the
clear majority in China. IDC service providers with revenues 4 million Yuan
and below accounted for 62.1% of all providers, while those with revenues
between 4 and 8 million Yuan accounted for 28.3%.
consulting, July 2008
13 of China's ministries, including the Ministry of Public Security and MIIT,
jointly announced that they will be cracking down on unlicensed IDC service
providers. CCID Consulting expects a number of service providers to close
China's telecom restructuring should improve IDC
restructuring is designed to have three
telecom operators with similar scale and resources to compete. More
competition would mean better support for IDC providers, which in turn would
provide better services themselves. Also, the former entities of China
Telecom, China Netcom, and their interconnection would have restricted IDC
industry development. The intended result is that IDCs will become more
sophisticated applications and demand will drive IDC development.
of Internet website proliferation has been closely followed by IDC service
providers. China's small and medium enterprises (SMEs) now demand more than
just hosted email services, but also website and e-commerce capabilities.
Enterprises will the major clients of IDC service providers. With the trend
of IT outsourcing in China to large enterprises, IDC providers may play a
role in outsourcing as well.
Another important factor is the emergence of content
delivery networks (CDN). China's network demands for Web2.0, streaming
media, e-commerce, and online gaming, for example, will drive CDN
development in 2008. Examples in China include
and Dnion Technology, which will
compete with telecom operators.
Value-added services become the competitive focus.
Given that IDC are services providers, they will look to
value-added services to compete, such as service-oriented communications
(SOC) which may bundled various security authentication and other services,
software (and hardware).
For example, HiChina
has received certification from China's National Information Security
Services, which is hosted by China Information Security Certification Center
and the National Computer Network Emergency Response Center. Moreover, with
these kinds of certification programs, IDC service providers will be helping
to increase China's network security and integrity.
For more information
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.