China’s Cloud Computing Industry is still in Overheating Period

CHINA’s cloud computing industry has just started, at the peak of the overheating period, and some blindness has been exposed in the implementation process. Therefore, research and exploration of cloud computing implementation strategies requires both an international and domestic macro vision and rationality. Thinking and pragmatic spirit.

If information and communication companies do not closely follow the four goals of corporate efficiency, operational efficiency, user experience, and energy saving and emission reduction, then the development of cloud computing will follow the trend and follow blindly.

At present, a prominent problem in the implementation of cloud computing is the tendency to follow suit and regardless of cost to a certain extent, which violates the basic principle of demand-driven. According to the experience of successfully implementing cloud computing data centers abroad, the first step is to conduct cloud computing cost accounting and investment return analysis, and make decisions on whether to start and how to implement it.

The planning process of cloud computing includes three consecutive stages, which are interlocked to form an evolution strategy and construction blueprint for the enterprise cloud computing architecture. “

The scale of China’s public cloud service market in 2012 was about 3.5 billion yuan, which is a data in the “China Public Cloud Service Development Survey Report” released by the Institute of Telecommunications Research of the Ministry of Industry and Information Technology not long ago. “This figure is only one-fifth of Japan and one-thirtieth of the United States, and less than one-third of Amazon’s turnover.” Zhu Qiliang, a professor at Beijing University of Posts and Telecommunications, told a reporter from People’s Post and Telecommunications.

In this regard, he made a judgment: “China’s cloud computing industry has just started, at the peak of the overheating period, and some blindness has been exposed in the implementation process. Therefore, research and exploration of cloud computing implementation strategies must be international and domestic The macroscopic vision of the company needs more rational thinking and pragmatic spirit.”

Promote the transformation of ICT enterprises

Zhu Qiliang believes that the implementation of cloud computing can promote the transformation of information and communication enterprises. The goal of this transformation is to target corporate benefits, operational efficiency, user experience, and energy conservation and emission reduction. He emphasized: “If information and communication companies do not adhere to these four goals, then the development of cloud computing will follow the trend and follow blindly.”

Regarding these four goals, Zhu Qiliang made a further explanation: the benefits of information and communication companies are directly related to the rate of return on investment. Operational efficiency of an enterprise, in short, is that an enterprise can complete the operation process in a shorter time and in a more automated way. User experience is manifested in that enterprises provide users with services that they can choose independently, clearer and more accurate billing, higher service quality and security, and reduce the cost of users obtaining services. As for energy conservation and emission reduction, a typical example is that enterprises use virtualized data centers to reduce energy consumption.

So, how can cloud computing help achieve these goals? Zhu Qiliang believes that after the implementation of cloud computing, measures such as virtual integrated service desks, service commodification catalogs, service tariffs, preferential rules and other measures will promote the service transformation of enterprises.

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In terms of IT equipment investment, enterprises can plan according to the amount of use, and can increase the return on investment through more commissioned contracts and the development of public cloud resources, and promote the transformation and transformation of investment.

Enterprises can also trigger changes in business models through business cost accounting and business participants’ evaluation and sharing, and changes in billing models. And process automation, the efficiency of the execution process, the integration, scheduling, and virtualization of IT resources will cause changes in IT organizational structure, systems, and operating models. The core of these changes is an autonomous, efficient, safe and green user experience.

In terms of specific practices, Zhu Qiliang pointed out that it is possible to evaluate the current situation of the enterprise, determine the services to be provided, optimize the cloud computing architecture, and improve the operation support system, and form service strategies and business strategies on this basis.

Analyze the Return on Investment

“At present, a prominent problem in the implementation of cloud computing is the tendency to follow suit and regardless of cost to a certain extent, which violates the basic principle of demand-driven.” Zhu Qiliang pointed out, “According to the experience of successfully implementing cloud computing data centers abroad, we must first Perform cloud computing cost accounting and return on investment analysis, and make decisions about whether to start and how to implement it.”

Zhu Qiliang summed up this process into a “trilogy”, namely construction cost analysis, operating cost analysis and estimated return on investment.

How to calculate the construction cost of cloud computing data centre? First of all, Zhu Qiliang analyzed the factors that need to be considered in the construction. These factors include land cost, civil construction cost, power supply facilities, basic network, network security facility construction, air conditioning and fire fighting facilities construction, computer room interior, network wiring and rack construction. As well as user area, monitoring area and peripheral facility construction.

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He emphasized that in addition, two other factors should be considered, namely IT equipment procurement and construction (including network equipment ), and system-level construction, such as the construction of virtualization software , cloud computing management systems and related systems. After setting the parameters on this basis, establish a cost model for the capital construction of the cloud computing data center, and then calculate the construction investment cost.

The calculation of cloud computing data center operating costs is also the same as the above method. Analyzing the operating elements first, Zhu Qiliang pointed out that the operating costs include electricity costs, bandwidth costs, labor costs, marketing costs, publicity costs, management costs and other hidden costs. Business income includes cloud host business, cloud storage business and elastic private cloud business. Under certain conditions, if cloud computing data center maintenance capabilities are strong enough, application revenue from several SaaS layers can be realized. Then, on the basis of setting the parameters, the operating cost model of the cloud computing data center is established to calculate the operating cost.

Later, on the basis of the two costs, analyze the profit model, estimate the return on investment in several years, and put forward specific construction and operation suggestions.

Develop Overall Industrial Planning

“To track domestic and international norms, strengthen the overall planning of the cloud.” Zhu Qiliang, and now, cloud computing international standard chemical is underway, interoperable cloud service management, cloud, cloud security, cloud portability and energy consumption Positive progress has been made in management and other directions.

In addition to the above-mentioned international standards, China’s Ministry of Industry and Information Technology Research Institute of Telecommunications officially released China’s cloud computing white paper on April 13, 2012. He emphasized that conscientiously studying the norms, doing an overall plan for cloud computing, and reducing blind compliance are the keys to ensuring the sustainable development of cloud computing in China, and we must attach great importance to it.

So, how to make an overall plan for cloud computing? Zhu Qiliang said that the process of cloud computing planning usually includes three consecutive stages, which are linked together to form the evolution strategy and construction blueprint of the enterprise cloud computing architecture. 

The first stage is the current situation assessment. Through the enterprise strategy and cloud service direction, as well as the business demand for IT service capabilities, the current IT environment of the enterprise is analyzed. After assessing the status quo of the enterprise and analyzing the needs of cloud computing, it enters the second stage, which is to determine the evolution direction of the cloud computing architecture.

Conclusion

Through the service business capabilities of cloud computing, and the best practices of cloud computing in the industry, form the enterprise IT and business to cloud computing architecture Demand. Since then, it has entered the third stage, which is to formulate a blueprint for the implementation of cloud computing.

On the basis of the future cloud computing architecture of the enterprise, the order, mutual relationships and risks of related businesses are considered, and the implementation blueprint for the cloud computing architecture is formulated. Finally, only in this way can the implementation of cloud computing in China enter a path of rational and sustainable development.

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