Chinese spending on innovation, technology growing twice as fast as in the US, fuelled by cloud services

September 15, 2017
Industry News
Content Provided By:

Josh Ye

Of the companies interviewed by Morgan Stanley in a latest survey, 34 per cent of Chinese corporate workload is handled using the cloud

Corporate spending on innovation and technology has been growing twice as fast in China than in the US over the past two years, fuelled by accelerating migration to cloud services, according to industry watchers.

In a latest research report released by US investment bank Morgan Stanley, information technology (IT) spending by Chinese companies is projected to grow 11.2 per cent this year, more that double their American counterparts’ 5.3 per cent rise.

The study, led by equity analyst Grace Chen, surveyed 126 chief information officers (CIO) in China and an undisclosed number of CIOs in the States.

While the scales of IT spending in both countries were not revealed, the faster growth by Chinese is clear, and is in line with figures showing data collection levels the year before.

Chinese companies spent 10.2 per cent more on technology last year, against 4.4 per cent in the US.

The findings also show Chinese cloud and CRM (customer relationship management) software spending growing at its fastest click in three years, adding the winners of such acceleration are the “leading public cloud vendors, and select semi [conductor] suppliers”.

The group of analysts name AliCloud and Tencent as the industry leaders in public cloud, and among the foreign players, IBM outshine other competitors.

“Our survey shows more than 30 per cent of CIOs have adopted Alicloud, and that China will maintain a similar leading share over the next three years, echoing our positive view,” the Morgan Stanley analysts said. Continue Reading
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