Wanda Group to Sell IBM Cloud in China

Wanda Group to Sell IBM Cloud in China

By Paula Bernier, Executive Editor, TMC  |  March 20, 2017

Big things are happening at Big Blue.

IBM (News - Alert) this week announced that it has joined forces with China’s Dalian Wanda Group to provide Chinese companies with cloud services. The partners will do that via a new venture called Wanda Cloud Company. It will employ select IBM cloud infrastructure and platform-as-a-service offerings to meet Chinese companies’ cloud requirements.

Spending on public cloud services in Asia Pacific is expected to reach $10 billion this year and $15.8 billion by 2020, according to Gartner (News - Alert). And Microsoft last month released a study indicating that 78 percent of Asia Pacific leaders said cloud computing is crucial to their digital transformation strategies.

“China obviously is a huge opportunity that's defined by size (and) acceleration of innovation...you have, by definition, high demand and digitization,” Ralph Haupter, president of Asia at Microsoft (News - Alert), recently told CNBC.

Microsoft brought its first data center online to support Azure cloud services in mainland China in spring of 2014. Today Microsoft has data centers in 13 Asia Pacific regions.

As for Amazon Web Services (News - Alert), it provides services in China in partnership with Beijing Sinnet Technology Co. Ltd., a service provider in the region.

Alibaba Cloud, the cloud computing arm of Alibaba Group, is China’s largest public cloud service provider. It’s also the fifth largest cloud service provider in the world. It provides global cloud computing services to 765,000 paying customers and more than 2.3 million customers around the world.

China’s No. 2 cloud provider is called Meituan Open Services, according to this article. This is a company best known for food delivery that recently expanded into cloud services related to AWS-compatible APIs, big data services, databases, hosting and networking, security and storage.

No. 3 on the list is Tencent Cloud. UCloud out of Shangai is No. 4, QingCloud is No. 5 and Huawei (News - Alert) Enterprise Cloud is No. 6.