Gartner Research

Microsoft's Azure Will Shake Up China's Cloud Services Market

Published: 26 June 2013

ID: G00247854

Analyst(s): Vincent Fu

Summary

In partnership with 21Vianet Group, Microsoft's cloud-based Windows Azure is available as a public preview in China from June 2013. The Chinese cloud services market is heavily regulated and difficult for new entrants. This partnership will boost Microsoft's competitive advantage in China.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The agreement with 21Vianet Group enables Microsoft to address increasing demand from multinational enterprises with dynamic business growth to migrate their on-premises Microsoft applications to the cloud in China
  • The offering of Windows Azure, and in the future Office 365, will boost local enterprises' use of Microsoft cloud services without major capital expenditure and help reduce software piracy
  • Microsoft's partnered entry into China, together with increasing activity from local cloud service providers, will influence the speed and nature of other global cloud service providers' moves into the Chinese market

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