China Cloud Storage Services to Grow at 103% Annually Over Next 5 Years

Springboard Research, in the IT market research industry, predicts the China Cloud Storage Services market to grow from US$6.05 Million in 2009 to US$208.54 Million in 2014, representing a CAGR (Compound Annual Growth Rate) of 103%.

While the price per gigabyte per month will continue to drop, increased usage of cloud storage capacity will drive growth in the overall size of the cloud storage market over the next 5 years, highlights Springboard’s latest China Cloud Storage Services Report ($3,500).

Springboard defines Cloud Storage Services as an aggregation of storage and storage-related services provided by cloud storage service providers, including hosting service providers, telecom carriers and technology vendors. The service offers advanced file sharing and collaboration, including data backup, archiving, remote sharing, and centralized storage for applications like internet protocol television (IPTV) and internet protocol video security (IPVS).

Medium sized businesses among the early adopters
Springboard’s report found that medium sized businesses will initially drive cloud storage service adoption in China, followed by both small businesses and large enterprises. The report noted reduction in total cost of ownership and simple and fast implementation as the major drivers for the overall cloud storage market.

"Limited IT budgets and concentrated investment on core businesses will drive the first wave of widespread cloud storage services among medium businesses", said Rita Xia, Associate Market Analyst, Greater China. "Implementing these services will help these business owners to reduce CAPEX and protect corporate capital liquidity", added Ms. Xia.

Among vendors, traditional hosting service providers will be early market initiators, investing in cloud storage services to repackage their existing hosting services.

High potential demand
among Transportation, Manufacturing and Public Sector
Cloud storage services will have a high appeal among Transportation, Manufacturing, Public Sector and Utilities in China.

"Cloud storage services will appeal to transportation sector customers as they need to deal with multi-regional industrial clients. Whereas, the Public Sector and Utilities will be encouraged by the government to gradually implement these services as they provide adequate technology support and lower on-site deployment and maintenance costs", Gene Cao, Senior Analyst, Greater China, supports the statement. "For the manufacturing sector, cloud storage services will provide the latest technologies and a seamless connection to existing applications. The sector typically does not have mature data centers and the IT cost to support production systems is high; thus creating a high demand for these services", added Mr. Cao.