This article originally appeared on ChinaDaily.com.
China's market for enterprise IT is huge, but the share that goes to cloud computing is still comparatively small. Sales of cloud computing hardware and services amounted to about $4 billion in 2014, about 5 percent of China's total IT market. That's much lower than the 11 percent of global IT spending on the cloud.
We expect China's spending on the cloud to grow much faster than its overall IT spending, reaching as much as $20 billion by 2020－an annual growth rate of 40 to 45 percent. Several recent announcements underscore the momentum toward the cloud in China.
The authors are Kevin Meehan, a partner with Bain & Co in Singapore, and Steven Lu, a partner with Bain in Shanghai.