Cloud Computing: the 4th IT Industrial Revolution!

Cloud Computing: the 4th IT Industrial Revolution!

Summary: China is projected to be on par with the U.S. as a future technology innovation leader -- and the next big breakthrough is predicted to come from cloud and mobile.

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TOPICS: China, Cloud, Mobility
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In a recent article in Communications World Weekly, a leading Chinese technology news outlet, they noted that Cloud Computing was the fourth IT Industrial Revolution, after Mainframes, PCs, and the Internet. In a related article, KPMG, noted that China is projected to be on par with the U.S. as a future technology innovation leader. And according to the survey that KPMG conducted, the next big breakthrough is predicted to come from Cloud and Mobile.

Communications World Weekly reported accelerated growth patterns and predicts that despite a bumpy ride China’s public cloud computing sector will be a driving innovative force. “A research report shows that in 2012, the cloud computing of China will reach the scale of over 60 billion Yuan in the market and by the end of the '12th Five-year Plan' this industrial chain will come to the aggregate of 1 trillion Yuan. This broad market landscape and development space will usher in opportunities for many competitive partners, and also prompt the development of modern information services in China."

The KPMG survey, like Communications World Weekly, agrees that “the pace of technology innovations today is happening at unparalleled speed and China’s projected rapid rise to prominence as a technology leader would be another example of this,” said Gary Matuszak, partner, global chair and U.S. leader for KPMG’s Technology, Media and Telecommunications practice.

The KMPG survey of 668 business executives in the Americas, Asia Pacific (ASPAC), Europe, the Middle East and Africa (EMEA) noted that 30 percent expected the next “disruptive breakthroughs with global impacts” to come from China and the US. India rated with 13 percent and the US with 39%. Interestingly, only 39 percent of U.S. respondents selected the United States as most promising, while 71 percent in China selected China. They have both the cash and intelectual capital to to drive innovation.

That’s not to say that there are not challenges that China will need to overcome to reach parity with the US tech sector. The survey result’s demonstrates China’s willingness to invest in technologies that it views as disruptive. The survey highlighted three areas in which the Chinese Government is focusing.

1.    Shared services and outsourcing
2.    Mobile payments
3.    Cloud computing

“The 12th Five-Year Plan is also driving innovation in these critical areas, in order to create a nationwide virtual environment,” said Egidio Zarrella, a partner in KPMG China.

Other interesting results were that by 2015, 30 percent of the survey respondents anticipate that Cloud Software as a Service (SaaS) will enable the next indispensable consumer technology. Also, 22 percent said Cloud Infrastructure as a Service, followed closely by SaaS, will have the greatest impact with regard to driving business transformation. In the U.S., the report predicts, SaaS was the top selection in consumer and enterprise technologies.

Some other interesting findings showed that responders viewed China as a potential challenge to Silicon Valley’s position as tech innovation center, though China will need to continue to make aggressive investments. Apple was overwhelmingly viewed as the top innovator; sorry, Microsoft. No Chinese up and comers were identified.

Another interesting point in the survey is that most, 45 percent, anticipate innovation to come from the executive suite, as opposed to R&D, 38 percent. Another nod to Jobs? They also saw innovation occuring in China's schools, 75 percent, versus 50 percent in the US.

Can China really catch and surpass Silicon Valley? Let me know what you think.

Topics: China, Cloud, Mobility

Gery Menegaz

About Gery Menegaz

Gery Menegaz is a Chief Architect for IBM with more than 20 years supporting technologies in the financial, medical, pharmaceutical, insurance, legal and education sectors. My Full-Time Employer is IBM. I write as a freelancer for ZDNet.

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7 comments
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  • No

    While a manufacturing powerhouse, China lags far, far behind even South Korea, never mind Japan, in showing any sort of innovative thinking among its industries. This is probably due to a longstanding cultural issue that will be hard to overcome: Chinese students have had a strong presence in top U.S. colleges for quite some time now, but their reputation is that of good, dependable students and researchers who would never dream of dropping out of school to start a business the way a Zuckerberg or Gates would. (The movie, "The Social Network," makes an oblique reference to this by putting numerous pretty female Chinese students in the background and as girlfriends of the non-Chinese protagonists.)

    At best, China might develop companies like Samsung or ASUS -- companies that are good at manufacturing, refinement and build quality, but hardly "innovative" in any original, innovative way (ASUS's original "Eee" Netbook is probably the only type of random exception to expect, but even then that started off mostly as just a knockoff/refinement of the inexpensive OLPC compact laptop project.)
    JustCallMeBC
  • No

    While a manufacturing powerhouse, China lags far, far behind even South Korea, never mind Japan, in showing any sort of innovative thinking among its industries. This is probably due to a longstanding cultural issue that will be hard to overcome: Chinese students have had a strong presence in top U.S. colleges for quite some time now, but their reputation is that of good, dependable students and researchers who would never dream of dropping out of school to start a business the way a Zuckerberg or Gates would. (The movie, "The Social Network," makes an oblique reference to this by putting numerous pretty female Chinese students in the background and as girlfriends of the non-Chinese protagonists.)

    At best, China might develop companies like Samsung or ASUS -- companies that are good at manufacturing, refinement and build quality, but hardly "innovative" in any original, innovative way (ASUS's original "Eee" Netbook is probably the only type of random exception to expect, but even then that started off mostly as just a knockoff/refinement of the inexpensive OLPC compact laptop project.)
    JustCallMeBC
    • ?

      Why is there a one minute newer copy of my post here?
      JustCallMeBC
      • No, well maybe.

        Not sure what happened with the post that it showed up twice. Glitch in the new system, likely.

        That aside, I do agree with you that China is far behind other countries in some respects. But remember the Olympics? They had the power to make a decision about cutting down on driving to clean the air over Beijing. Then were able to quickly implement the policy of having their entire population driving only on either odd or even days based on license plates or some such number. That is an ability that few countries have today.

        Makes the argument viable, in my mind.

        Thanks for your post.
        gery.menegaz
  • going for broke

    Surpass Silicon Valley... well takes far sight ideas and the will. Tell me what are the US Universities are saying about Asians studying here in the US. Figure how many have left. Very soon the main center of the Tech world will be in China -- where the money is.. hey they have there own space program, funding space research does spill down to private industry. Once that happens look out.
    Tom Boswell
    • Going for broke...

      Tom, thanks for the post. I am still a little skeptical but China is certainly a contender.
      gery.menegaz
  • Mobile Payments Yuk...

    I am very sceptical about the mobile payments these days, it's getting easier and easier to hack these things. Hope to see security changes that make the mobile and cloud services very safe in this crazy revolution....

    Thanks,
    Dan
    http://www.fieldserviceinthecloud.com
    dbuckle