By Thomas Tsao
With China’s cloud market expected to top $160 billion (US) within the next year, it is no coincidence that it is becoming an emerging hotbed for major cloud vendors.
As a venture capitalist in China, I am particularly optimistic about opportunities in the cloud sector for both enterprises and startups.
Since 2009, Gobi Partners has been actively investing in cloud technologies. These investments have encompassed cloud infrastructure, platform and services.
In 2010, we made our first investment into a Software-as-a-Service (SaaS) company, Gokuai, and have invested in four more since then. We see no end to the sector’s potential as the market continues to drive demand for cloud innovations, particularly those designed for enterprises.
Just like in other markets, companies operating in China are experiencing the same challenges from rising employment costs, shortages of skilled professionals and the general need to reach greater efficiencies.
Enterprises will need to find new and creative ways to operate, which is why we have invested recently in cloud startups including Gokuai (file collaboration), Wiznote (notes group collaboration), Teambition (project management and collaboration), Cloudwise (application performance management) and Keytone (OpenStack based hybrid cloud solution provider) that are geared towards helping enterprises increase efficiency and productivity.
Recently, IBM struck a partnership with Tencent Cloud, one of China’s largest Internet service providers. The two companies will work together to provide public cloud with SaaS solutions for industries, better enabling cloud transformation in the era of mobility.
Tencent Cloud and IBM will deliver the essential elements for businesses to get up and running on cloud,
With partnerships like these as well as ones on the horizon, China represents a green field for cloud opportunities—one that we can’t afford to pass on.