Dell sees bright future for cloud sector

US tech giant to further tap into China market as firms are ramping up digitalization

Cloud computing's role in business will grow bigger as more Chinese companies embrace digitalization, a Dell Technologies executive said.

Since China is promoting next-generation information technologies for greater advancement, cloud computing will outgrow its current role as a big data storage solution, said Phillip Wu, general manager of VMware solutions at Dell Technologies Greater China.

"This will enable enterprise users to operate IT-related resources in a more convenient and flexible way, be it for computing, network, or storage."

Wu said more and more Chinese companies have been digitalizing their business in recent years, but many of them are still at an early stage in the adoption of cloud computing technologies.

"More efforts are needed to encourage local companies to consume cloud computing as naturally as utilities like electricity. Only when companies treat cloud as a core business driver can it acquire a competitive edge."

Dell will help more Chinese companies in their digital transformation, he said. For instance, Dell's cloud platform, powered by VMware, can deliver management across private, public and edge cloud infrastructure. Using it, Chinese companies can enjoy a hybrid IT approach.

Dell is also offering cloud-native services, through which the underlying infrastructure is decoupled. Via automation, IT resources can be provisioned in minutes and re-sized, scaled, migrated or removed on demand.

As cloud-native services take full advantage of cloud as a service or CaaS model, they can make extensive use of platform as a service or PaaS computing infrastructure and managed services, Wu said.

"Under such a model, companies will be able to develop an application within three or five days instead of months. It's a solution that can really bring some innovation to companies, helping them find some new business drivers."

Wu said China already offers some business opportunities. "Dell is confident about its cloud portfolio in the country. The government has announced a series of initiatives to spur IT development."

The digital economy, which includes cloud computing, is a key focus in the country's 14th Five-Year Plan (2021-25). During the period, China aims to unlock the value of data and push forward the digital economy using the latest technologies.

"It's the trend after the COVID-19 pandemic, when digital businesses are becoming increasingly important for the Chinese market. Many Chinese companies have begun to consider how to build a solution－whether it is cloud-based or software-defined－to help their businesses."

Although it might take some time for Chinese companies to recognize the critical role of IT infrastructure, China, being very diversified and home to the full range of companies, will travel the entire digital distance, Wu said.

"The range of highly specialized needs that companies in China have will help Dell Technologies to utilize all the wealth of experience drawn here to drive future expansion in other markets."

For instance, Dell is launching a flex-on-demand consumption model in China where companies can acquire the technology they need to support changing business with usage-based payments.

"The fast-moving business environment globally, especially since the onset of COVID-19, drives the need for availability of on-demand IT solutions. Such a model can help them pay for technologies they use to reduce cost," he said.

Kai-Fu Lee, founder and CEO of Sinovation Ventures, which funds tech startups, said China is ushering in a golden wave of industrial upgrading, which is driven by technology.

Thus, technology-enabled automation, intelligence and cloud computing will become the nation's core economic drivers in the coming 10 years, Lee said.