The hot topic in cloud computing in this month emerged on July 14th, on which day the VMware and China Telecom signed a MOU in Beijing, they would jointly build the China Telecom Tianyi hybrid cloud services. This is definitely an alliance between two giants, with both sides hoping to lead the tide in the outbreak year of China’s cloud computing market.
The president of VMware in China, Song Jiayu said, "70% of the customers in governments and enterprises in China have adopted the cloud hosting services of China Telecom, and 80% of them use the VWmare architecture in the implementation of cloud computing." VMware and China Telecom are basically equal in this cooperation.
The CEO of VMware Pat Kissinger said that China is one of the world's fastest-growing markets in cloud computing, and the CAGR in cloud computing in China exceeded 25%. He pointed out that the overall business income of VMware increased about 20% in China in the last two years, but the increase is not easy. VMware has launched vCloud Hybrid Service (vCHS) previously and entered the private cloud services, hybrid cloud services market ambitiously. But vCHS didn’t work very well in domestic market, Song Jiayu said: "vCHS purely started from the technical perspective, but wasn’t adapted to China's enterprise application environment in operation and security, and there are also risks in regulations."
So, VMware hopes to get its techniques transported to China Telecom cloud computing company, which can avoid risks, and can also realize the value of its own. In order to achieve this purpose, VMware is willing to cooperate with China Telecom cloud computing company, and help it in creating the "Tianyi cloud" brand as a hero behind the scenes. VMwae made a wise choice. Because the its rivals such as Amazon, Microsoft, they become stuck in China market just due to the lack of a strong partner in China.
The cooperation also means a lot to China Telecom. China Telecom cloud computing company has entered the cloud computing market for 2 years, and has obtained certain technical accumulation. But in the hybrid cloud services market, China Telecom cloud computing company is still in its "growth stage".
At the beginning of 2014, China Telecom cloud computing company determined the core targets in the market: government, education, finance, medical and campus, the products are private cloud services and hybrid cloud services. In China, private cloud services and hybrid cloud services account more than 90% of the market share, far more than the public cloud services.