Cloud computing: reshaping the traditional IT industry

What does cloud computing mean for traditional IT companies?

"Business model transformation and new opportunities." In a high-end office building on Shanghai's Huaihai Road, Zhang Zhenlun, technical director of VM Ware Greater China, replied.

Not long ago, Zhang Zhenlun led his team from Pudong to move here, the number of personnel is increasing. This change seems to indicate the prosperity of the business they are engaged in. Although it is already the world's largest provider of virtualization solutions, VM Ware looks like an emerging company.

Everything is due to cloud computing-the most fashionable term nowadays called "IT communism". Virtualization technology can help enterprises reach the "cloud" with higher efficiency and lower cost. For VM Ware, this means a larger market and more business opportunities.

VM Ware is not the only beneficiary of cloud computing. Although the outside world still sees the concept of "cloud computing" in the fog, for those engaged in the IT industry, the following facts are no doubt: large-scale data computing and storage have become a trend, and enterprises and individuals are based on "cloud services" "Demand has also begun to emerge. For enterprises in need, cloud computing brings not only the transformation and upgrading of IT technology, but also the innovation of organization and operation models.

This change also profoundly affects the entire IT industry chain. A new change has begun.

Where does demand come from?

The "No. 1 Shop" located in Zhangjiang Hi-Tech Park in Pudong is a B2C e-commerce company that provides everything from mineral water, plum sugar to mobile phones, computers and other daily necessities. In 2010, the sales revenue was 805 million yuan. Based on the huge data processing requirements of e-commerce, the company recently established a "private cloud" internally.

The so-called "private cloud" is simply a data center established by an enterprise. The concept against it is "public cloud", which currently includes cloud computing services provided by Google, Amazon, etc. It is a simple public cloud service for individuals.

Yu Gang, chairman of No. 1 Store, said in an interview with reporters that the characteristics of e-commerce determine that companies must have powerful data meters and storage backends. The private cloud of the No. 1 store not only solves the needs of data processing within the enterprise, but has also been transformed into a "cloud application" service, which provides a series of orders processing, warehousing, product display, customer relationship management, etc. service.

"The biggest benefit of cloud computing is to improve server efficiency and save costs for enterprises." Zhang Zhenlun said, "private cloud" and "public cloud" represent two levels of demand. One is for the internal data processing needs of the enterprise, and the other is for the public data processing needs outside the enterprise. "Private cloud is like a company's own generator, and public cloud is a power grid." Zhang said, just like the different stages of power development, the two kinds of demand complement each other.

According to data and forecasts released by IDC, global revenue from public cloud computing services will grow at a rate five times that of traditional IT. It is expected that the revenue of public cloud computing services in 2014 will reach 55.5 billion US dollars, and in 2009 this figure was only 16 billion US dollars. In this way, its annual compound growth rate reached 27.4%. The growth rate of traditional IT products during the same period is expected to be 5%.

However, China still lacks large-scale public cloud services. Zhang Zhenlun said that the main reason is safety. Large companies dare not rush to put trade secrets on external public clouds.

In addition, since the private cloud can enable enterprises to quickly put into business, IT construction is no longer a cost burden for the enterprise, but can be closely integrated with the business, becoming a strategic resource of the enterprise, which is welcomed by the enterprise.

In this case, the development of cloud computing is mainly manifested as a private cloud built by some large enterprises. Large domestic Internet companies including Tencent and Alibaba have begun to set up cloud computing centers. Wu Xiaodong, president of TIlera Asia, said in an interview that enterprise data security, multimedia video industry, and network companies will become important areas for future cloud computing needs. TIlera is a chip company based in Silicon Valley, which provides multi-core processing chips for cloud computing.

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