What happened: China’s spending on public and private cloud is increasing at a rate twice that of the global market, according to IDC’s latest cloud computing monitoring report.
China’s investment in information technology infrastructure will continue to grow rapidly and is expected to reach 25% of the total global market spending by 2023—more than double the 12% in 2018.
In five years, “China’s spending on private cloud infrastructure will surpass that of the US and become the world’s largest market,” the company said.
Why it’s important: China’s fast-growing market for cloud services has attracted much attention from global players.
The relatively new market is booming and quickly catching up with other advanced cloud computing markets like the US.
However, given the government’s long-standing protectionist policies, foreign cloud service providers face great challenges competing with Chinese tech giants such as Alibaba’s cloud computing arm which currently holds more than 40% share of the public cloud market.