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Frost & Sullivan releases '2023Research Report on China's Local Cloud Market in 2023
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Recently, Frost & Sullivanfrost &Frost & Sullivan, commonly referred to as 'Frost & Sullivan', has released the '2023 China Local Cloud Market Research Report'. 'Local cloud' refers to the hierarchical deployment of edge computing resources on a city basis, providing edge computing services in a distributed manner to adapt to the development trends of the digital age; local cloud is the urban digital foundation in the era of deep cloud usage. By adopting new-generation technologies, it provides high-quality and highly available cloud service capabilities for various industries across cloud-affected areas.
01
Overview of China's Local Cloud Market
With the in-depth development of smart city construction, network and storage demands have grown rapidly, making computing power the core productivity supporting smart city infrastructure and services. Against this backdrop, China has been continuously building and improving the urban computing power supply system, accelerating the digitalization process of smart cities.The construction of 'millisecond-level' latency rings and a hierarchical computing power supply system have become new focuses for enhancing digital infrastructure in various regions, provinces, and cities. At the same time, in response to the 'dual carbon' policy, there are new requirements for the efficient utilization of idle telecommunications computer room servers, switches, and other hardware resources, aiming to achieve optimized resource allocation and green low-carbon development.
This report clarifies the basic concepts and connotations of local cloud services. By examining three dimensions: technology, service, and value, it sorts out and explores the core driving factors of the industry, evaluates the current market situation and development trends of local cloud services.
02
Definition and Composition of Local Cloud
"Localized Cloud" is a model that deploys edge computing resources at the city level, providing edge computing services in a distributed manner. It unifies the planning, construction, and scheduling of cloud resources across an entire city to create a cloud resource pool with urban attributes. Localized Cloud adapts to the development trends of the digital age, meets the growing needs for business and data, and improves the quality and reliability of computing services. The development of modular data centers has made the construction of data centers more efficient and cost-effective. In addition, the development and maturity of virtualization and cloud technologies have transformed the design, construction, management, and operation and maintenance methods of data centers, accelerating the development of technologies such as edge cloud and Internet of Things.
Source: Analysis by Frost & Sullivan
03
The underlying core technology provides important support for local clouds.
Cloud-native, AI, privacy computing, edge computing, and metropolitan area network technologies can better help local clouds address the challenges brought about by data explosion growth and accelerated informatization processes. They also ensure data security and guard against various security threats, thereby enhancing the efficiency, accuracy, and security of local cloud services. AI empowers local clouds with its advantages of intelligent analysis, automatic optimization, and flexible expansion. Privacy computing enhances local cloud capabilities with its strengths in protecting data privacy, increasing data value, and promoting data circulation, providing local clouds with functions for data security, data analysis, and data collaboration. Edge computing empowers local clouds with its advantages of near-processing, low latency, and high bandwidth. Metropolitan area network technology enables rapid business innovation and meets the needs of cloud computing andThe demand for 5G supports multi-service converged bearer and network slicing.
04
The regional cloud continuously empowers users' business evolution.
· improveICT Utilization Rate: Building the Urban Cloud Infrastructure
Territory Cloud isICT applications provide basic hardware resource support, enhancing the collaborative and rapid deployment capabilities of network, computing, storage, and other resources. Relying on agile and efficient cloud-native technologies, the comprehensive utilization efficiency of ICT resources has been improved compared to traditional models. At the same time, a rich local ecosystem promotes the development of government applications.
· Empowering business applications with agility and reliability
By providing infrastructure capabilities comparable to public clouds, we have significantly enhanced the reliability and scalability of customer businesses, enabling customers to quickly and flexibly obtain the computing, storage, and network resources they need.
· Technological Inclusiveness
Flexibly and quickly respond to diverse business scenarios in the city, providing an innovative model for cloud services. The development model is evolving from the traditionalThe "waterfall-style" development has evolved into a modern cloud-based digital and intelligent-driven development model, achieving a leap from monthly to daily application deployment cycles, making smart city applications more accessible and beneficial to the people.
Source: Analysis by Frost & Sullivan
05
Territory Cloud actively empowers enterprise business innovation
With the gradual maturity of cloud service technology and market, more and more enterprises and governments in various provinces and cities are accelerating their migration to the cloud. For a city, a local cloud can uniformly plan, build, and schedule the entire cloud resources. It can meet its requirements for local data security and control, resource elasticity and stability, as well as high-bandwidth and low-latency services for businesses. The local cloud helps integrate businesses, optimize networks, and improve system security. The local cloud fully leverages its advantages to actively assist in upgrading the digitalization levels of manufacturing, transportation, finance, and government affairs, thereby improving operational efficiency.
· manufacture
The manufacturing industry has faced many challenges to date, such as structural issues in business operations, high operating production costs, inconsistent standards and insufficient data volume in terms of data, as well as privacy and security concerns that need attention. The local cloud has architectural advantages such as cloud-edge-cloud-network collaboration, metropolitan area networks, and security and trustworthiness. At the same time, it offers lower prices, enabling control over production costs. Therefore, corresponding methods can be proposed to solve these issues, and various solutions and paths are provided in terms of business and data.
· transportation
The traditional data collection capabilities for transportation business are difficult to meet development needs, lacking coordination, and facing issues such as insufficient security assurance levels and inadequate technology integration. Local cloud provides a basis for transportation management decisions through real-time data collection, processing, and analysis, effectively improving the real-time feedback capability, data analysis capability, and deployment efficiency of intelligent transportation. At the same time, local cloud can integrate transportation resources within the region, achieve cross-departmental and cross-regional data sharing, further improve overall transportation efficiency, such as timely feedback and processing of road conditions information, traffic flow, and traffic accidents, guiding emergency management and resource scheduling.
· finance
The financial industry faces many business challenges, such as bottlenecks in traditional businesses, heavy coupling of emerging businesses, slow decision-making due to data silos, and high costs of compliance construction. Local cloud has architectural advantages such as cloud-edge-cloud-network collaboration, metropolitan area networks, and security and trustworthiness. At the same time, it is cheaper in price, capable of controlling production costs, and thus can propose corresponding solutions to these problems. It provides various solutions and paths from both business and data perspectives. Local cloud flexibly develops and utilizes data resources for different typical scenarios, promotes innovation in digital financial products and services, improves the efficiency of financial data uploading to the cloud, facilitates regulatory agencies to view, avoids financial risks, and protects the privacy and security of financial data through storage isolation and encryption technologies.
· government affairs
There are numerous internal systems within government departments, with different technical architectures, making it difficult to aggregate data from the government cloud. With operational pressure, the government cloud faces multiple challenges. Solutions are provided by combining infrastructure, data middle platforms, and industry applications for government and people's livelihood scenarios. This helps government departments achieve centralized management and dynamic allocation of resources, promoting scientific and precise decision-making by the government. In addition, local clouds assist in building digital economy empowerment centers, technology innovation incubation centers, and promoting the upgrade of digital government services.
06
Territory cloud driving force analysis
From the demand side, currently, computing power, as the core productivity of the digital economy, has become an important infrastructure for national economic development. The surge in cloud services and data volume has put systematic on-premises cloud construction on the agenda. On-premises clouds adapt to the development trends of the digital age, meet the growing business and data needs, and improve the quality and reliability of computing power services.
From the supply side, local clouds continue to embrace technological innovation. Cloud-native, artificial intelligence, privacy computing, edge computing, and metropolitan area network technologies can better help local clouds cope with the challenges brought about by data explosion growth and accelerated informatization processes, while ensuring data security and preventing various security threats. This enhances the efficiency, accuracy, and security of local cloud services.
In the development of local cloud industries, government departments have provided the main impetus. Since the 18th National Congress of the Communist Party of China, China has made a series of major arrangements around implementing strategies such as building a cyber power and big data. The integration of cloud and network has officially become an important part of the construction of digital information infrastructure in China, greatly facilitating the development of local cloud industries.
07
Manufacturer Introduction
· Tianyi Cloud
Based on China Telecom "Cloud Transformation and Digitalization "Strategy: Fully leverage the advantages of cloud-network integration, actively deepen cloud migration, and complete across the entire networkCloud migration to IT, deployment of business platforms on the cloud, and initiation of the "Lighthouse Navigation" internal data transformation initiative; at the same time, Tianyi Cloud actively leverages its resource and technology strengths, adopting the Tianyi Cloud 4.0 technical architecture to continuously build a new generation of "one city, one pool" local cloud computing nodes, and continuously solidifying the foundation for digital economy development. By extending services to cities and surrounding areas, Tianyi Cloud empowers customers to obtain computing power services nearby, providing cities with industry-specific, "edge-end-cloud-network-intelligence" full-platform cloud-network integration service capabilities, promoting the full implementation of digital applications, and accelerating the digital transformation process of governments and enterprises.
· Alibaba Cloud
ALibaba Cloud Global AccelerationDCDN builds global secure acceleration networks and intelligent edge services for cloud services and applications. Through ENS, it creates cloud-edge integrated container cloud platforms for various cities and regions, providing one-stop distributed computing resources featuring 'integration, openness, linkage, and elasticity'. It helps users' businesses sink to the edge. Alibaba Cloud meets users' business needs in terms of low latency, cost control, data security, and ultimate experience, continuously unleashing the diversified value of local clouds and comprehensively empowering application fields such as digital government, digital society, and digital economy.
· Huawei Cloud
Deepen practiceThe "Everything for Service" strategy aims to build a cloud foundation and enabler for digital transformation, iteratively developing the "Urban One-Cloud" reference architecture. It has launched the "Urban One-Cloud 3.0" solution based on the concept of "One City, One Cloud," creating a more resilient, secure, and intelligent urban cloud for smart city construction. Huawei Cloud has constructed the Urban One-Cloud reference architecture and comprehensively upgraded distributed cloud-native infrastructure, four major production lines, GaussDB, government aPaaS, and other capabilities to help cities move towards refined "intelligent governance."
· Tencent Cloud
With infrastructure nodes distributed globally, and leveraging multiple strengths such as a solid foundation architecture, an integrated intelligent security management system, and a complete partner ecosystem, we provide enterprises and entrepreneurs with a global cloud service experience that integrates cloud computing, cloud data, and cloud operations.ECM and TEZ, Tencent Cloud helps customers extend their businesses downward, building unified management platforms at multiple city levels, outlining a blueprint for "one government cloud for all provinces and cities" with edge government cloud nodes in districts and counties. This achieves integrated management and unified scheduling of government clouds across multiple districts and counties, helping to enhance the efficiency of digital government and fully meeting the service and resource scale construction requirements for government clouds at different levels.
· Mobile Cloud
ImplementIn the three-year strategic plan for becoming a 'first-class cloud provider', China Mobile continuously optimizes its '4+N+31+X' computing power intensive layout. It focuses on leveraging its inherent advantages and innovating in key core technologies to build cloud resource pools for multiple cities and regions. It adopts the 'one cloud, multiple pools' and 'one cloud, multiple cores' architecture systems to establish a cloud that is 'scaled up, systematic, and capable'. It realizes unified centralized management of multi-core resource pools and provides scalable, highly available, and elastic cloud services for enterprises and governments with distributed cloud computing architecture.
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