Microsoft China cloud business sees 'good growth rates'

A visitor is seen at the stand of Microsoft during the 2nd China (Shanghai) International Technology Fair, April 27, 2014. [Photo/IC]

Microsoft Corp's cloud computing business is enjoying "good growth rates" in China, a top executive of the US software giant said on Wednesday.

Ralph Haupter, corporate vice-president and CEO of Microsoft Greater China, said the country's growing appetite for cloud services is creating a bigger market for Microsoft Azure, its cloud platform.

After Microsoft kicked off the commercial operation of its cloud business in China, the company has accumulated more than 50,000 customers, according to Haupter. Many customers are small and medium-sized enterprises in the private sector. Microsoft teamed up with Beijing-based data infrastructure provider 21Vianet Group Inc to bring Microsoft Azure to the Chinese mainland to meet industry regulations.

Haupter underlined the security and reliability features of Azure, saying that openness and flexibility are major focuses of the company when providing cloud services.

The comment came amid the strong headwinds Microsoft and an array of overseas technology vendors are facing in China, where some government bodies and enterprises are abandoning overseas technology for domestically made alternatives due to information security concerns.

Xu Xiaolan, secretary-general of the Chinese Institute of Electronics, a government think tank, said China's national strategies, such as boosting high-end manufacturing, will increase demand for cloud services in the coming years.

"China has set a growth plan for the cloud industry until 2020. Strong government support is set to speed the use of cloud servers in more traditional sectors over the next three years," Xu said. Although local cloud providers are more likely to benefit from the project, Xu said top multinationals will also get their "fair share" in the segment.