Manufacturing News

Enterprises accelerate digitization and shift IT systems to the cloud

Chinese enterprises are accelerating their digitalization efforts in the aftermath of the COVID-19 outbreak and actively shifting their IT systems into the cloud, according to a new report.

The Enterprise Cloud Index report, commissioned by US-based cloud computing company Nutanix, said accelerated cloud and hybrid adoption is occurring amid the pandemic, fueling the uptake of hyperconverged infrastructure technology in China.

According to the report, 62 percent of China respondents said they have increased their investment in hybrid cloud as a direct result of the pandemic, compared with 46 percent globally.

Nutanix noted the HCI boom has come at a time when China is meeting its 2019 goal of drastically reducing traditional datacenter deployments.

Only 11 percent of Chinese respondents reported using traditional non-cloud enabled datacenters exclusively in 2020, compared with 55 percent last year. Nearly 90 percent agree that an integrated mix of public and private cloud datacenters is the ideal architecture for their company.

Lily Ma, head of Nutanix in China,took a rosy view of China's rising cloud market, saying the company has witnessed business opportunities in the growing demand for digital transformation.

"China is leading the world in economic recovery from the impact of COVID-19. The government has made a strategic decision to foster a new 'dual-circulation' development pattern, which focuses on the domestic market as the country's economic mainstay, with domestic and foreign markets complementing each other," Ma said.

As China rebounds from the COVID-19 pandemic, the country is ramping up efforts to enhance and upgrade national IT infrastructure. In a bid to further stimulate new consumption demand and boost industrial output, China has pledged fresh efforts in advancing the construction of new infrastructure projects, such as 5G networks, data centers and artificial intelligence.

"As we emerge from the COVID-19 pandemic, China is ramping up its digital and innovation credentials, and this acceleration is being felt across industries," Ma added. "As a result, many organizations are finding their legacy infrastructures can't keep up, and have significantly accelerated their journey to hybrid and multi-cloud."

"Hybrid cloud is considered the IT infrastructure of the future in China. In fact, five years from now, respondents in China expect to see growth only in hybrid cloud and mixed-model infrastructures. The reasoning behind this prediction is clear - the benefits of hybrid and multi-cloud, including flexibility, agility, lower costs and greater control over IT resources - will help organizations in China continue to adapt and thrive in the post-pandemic world," Ma added.

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