December 12-13,2018,the 13th China IDC Industry Annual Ceremony(IDCC 2018)was held in China National Convention Center,Beijing,which is hosted by the organizing committee of China IDC Industry Annual Ceremony and undertaken by China IDCQUAN and CloudBest.As the largest and most influential landmark event in China IDC and cloud computing,themed with“Enabling digital transformation”,IDCC 2018 is converged with leaders and experts from MIIT and CAICT,as well executives,guests and media representatives from operator,internet,IDC,cloud computing and so.All the guests at present conducted in-depth discussion on digital economy era and the new technologies,new practices and new trends the enterprises encountering with during the process of digital transformation.
At the conference,Justin Huang,CEO of China IDCQUAN and IDCNOVA delivered the themed speech of“the development opportunities for IDC industry under the tide of digital transformation”.The transcript is here as follows(without verification of the guest speaker himself):
Justin Huang,CEO of China IDCQUAN and IDCNOVA
Good morning everyone.This is Huang Chao,CEO of China IDCQUAN and IDCNOVA.On behalf of the organizer of IDCC 2018,I’m very happy and honored for your participation.Like many of you here today from the IDC industry,we China IDCQUAN and IDCNOVA have been dedicated to insist on setting up an exchange platform like this and we have done that for 12 years.And I also want to make this opportunity for sharing some thoughts towards the future IDC industry with you.
Undergone the wave of digital transformation,for the traditional industries, it’s the only route to pass for digital transformation.For the IDC providers,it’s both a opportunity and challenge for the digital transformation.As for how to capture such a opportunity and evade the potential risks in-between,then it’s necessary to know what’s digital transformation exactly supposed to be and which stage the Chinese enterprises belong to,as well as the relevant policies and regulations,what kind of scenarios we’ll meet with and how to integrate with the IDC industry.Today,I’m willing to share the above-mentioned contents too,hope it can irritate some thinking and enlightenment.
If we want to be down-to-earth,then I think that we should look up to the sky at first.One wants to stand in the wind gap should know which the way the wind blows and how heavy it is.At first,from the global perspective,let’s have a look at digital transformation.We made some analysis towards the globally historical data and divided the digital transformation into 4 stages:
1、the concept stage:during this stage,the state government starts to make planning and push in the strategic level,the college and research institutes starts to conduct research on talent pool and development mode,the manufacturers starts to design and build up service and product ideology.The IT infrastructure of enterprises starts upgrading and the enterprises starts to research some commercial application based on the emerging technologies.
2、the product stage:during this stage,the state government starts some specific policy making and trial cases.The product line is gradually improved,and the manufacturers begin the establishment of its own CSR team,the enterprises are trying to transfer their services onto SaaS and IaaS.
3、the platform stage:during this stage,the level of digital transformation of the enterprises may probably exceeds 50%.Quite good integration between IT and business has been completed,and a data closed-loop system internal the enterprise is forming,which enables some data insight.
4.the ecology stage:during this stage,certain consensus has been achieved among the state government,relevant industries and the enterprises,some certain standards and specifications have been set up towards collection,logistics and insight of data,which brings about the mutual ideology.Analyzing the digital level among the globe,USA and China,we can see that the Chinese enterprises are mainly in the 3rd stage,the product stage,while the American enterprise with quite a large proportion has stepped into the platform and ecology stages.This comparison is very useful for us to understand the following development pace of the China IDC infrastructure in the future.
Let’s take a simple retrospect over the key points during the digital transformation of the Chinese enterprise.One is the the ERP remould and upgrading of SOEs starting from 1992,one is the mass application and popularity of Internet plus by 2015 which we are familiar with,which irritates the wide spreading adoption of cloud computing,big data and so till now.Now we see all walks of life are trying to initiate the exploration of digital transformation,in addition to the long process of digital transformation,we experienced a lot of new technology,but also eliminated a lot of out-of-date technology.However,it is IDC and cloud computing technologies that will eventually settle down and have a close relationship with all of us here.If an enterprise does not go through the process of digitization and cloud transformation,we may say that the enterprise has not yet entered the process of transformation.
From the national level,the digital economy is an important national policy now.In the past five years,China introduced many related policies and these policies are guiding and improving the infrastructure construction policies towards the digital economy,such as the development guidelines on cloud computing and big data in key industries like intelligent manufacturing,and the national development strategy regarding big data raised during the 19th CPC National Congress and so on,all these had greatly motivated the vitality of IDC and cloud computing industries.
The development of China's digital economy market has been very effective,with the size of the market increasing nearly tenfold in the past decade.Last year,China digital economy has accounted almost 33%of the overall GDP,with nearly annual 3%increase.Another data is the proportion of iGDP,the proportion of internet technology in GDP,China's proportion of iGDP has exceeded the global average level,and we found that the growth of iGDP and IDC industry growth is similar,and almost synchronous.The growth of our IDC infrastructure as a whole is a fundamental condition for iGDP growth.
Let’s check the digital economy in the three major industries.For the added value the figures of digital economy are 29 percent in the service sector,17 percent in the industry sector and 6.2 percent in the agriculture sector.As the most familiar industry for us,we have witness rapid growth of some service industries like e-commerce,sharing economy,network culture,fintech and so on.
As for the manufacturing industry,it will continue to go through the digital transformation in the coming years and already contributed some fruitful outcomes,which include intelligent manufacturing,management and production process improvement by digital technology;tailored design,make use of internet and intelligent factory,convert various customer demands into the small-sized,individual orders in mass quantity;network synergy,utilize the industrial internet and cloud platform to develop synergistic and collaborative modes in R&D and design and supply chain.
Talking about agriculture,its digital level is still very low.That’s mainly because of insufficient agricultural equipment and the dominant small-sized production mode currently,which is hard to support the relevant information technology equipment,thus there is still a long way to go for the digital transformation in the agricultural field.
From the horizontal perspective of IT architecture,the IDC industry can be divided into three levels:1.Physical layer,mainly composed of sensors,networks and other infrastructure equipment,responsible for data collection,transmission,production,execution and so on.2.Platform layer,which provides data storage and calculation,mainly composed of platforms like cloud computing and big data.3.The digital layer is composed of various data generated by various applications to accumulate as our digital assets.
These above three levels are combined with our three industries,so that our data flows in each industry,forming a complete information physical system,so that we can have a good cooperation between industries.For example,the Internet plus mentioned before frequently,which is also based on such a mode and theory.We can see the structure of information system at three levels in various industries.More importantly,we can discover the demand of differentiated technologies in different industries through the mode.I believe this is also the most needed ability for practitioners in this industry.Let's go back to the platform level,we have a lot of policies at the platform level.About statistics,in the past three years,there are more than 20 policies introduced from the levels of the state and relevant ministries.if you are interested,you can get a complete policy book just just from the booth outside this venue.
Hereby I am willing to share with you on several typical policies.1.The three-year plan of action for the development of cloud computing,which is to guide the government and industry to invest in technology research and development,focus on breaking through some core technologies,reduce costs and provide a fast track for the acceleration of the industry.2.The application development guidance of data center,which was launched this year,is also very effective in guiding the balance between supply and demand and optimizing the resource input of both sides.3,the promotion implementation guideline of cloud application for enterprise,from the national level and the local authorities level,this is promoting to the cloud application for the national key SOEs and local key SOEs and SOEs,which is also a very good motive way to arise the awareness of cloud application for all the enterprise around the country.
On the technology side,many cloud computing technologies have gradually entered the mature stage,such as energy management technology,including the data center energy consumption and the energy consumption of host equipment,as well as the application,chip and so on,which are all working on the workpiece energy consumption.Take VR technology as an example,which is the most important technology at the core of cloud computing,providing us with an important support at the infrastructure level.VR is also the foundation of flexibility and low cost.These technical problems are being overcome one by one.At the same time,some new technologies are gradually proposed,which provides firm guarantee for the digital transformation of traditional industries and also acts as the founding condition to mature state for the IDC industry.
Then let’s have a look at the market condition after the policy and technology level analysis.From its beginning till today,China IDC industry has been on the a fast development pace,its market size has experienced several key points,one is in 2006,due to the acceleration of broadband and the rise of internet applications,in the supply and demand sides of IDC resources,a wave of rapid development was ushered.many of you have experienced this wave.In the end of 2013,the IDC license was reopened after being suspended so many years,a large amount of capital outside entered IDC industry and invested in infrastructure construction,and also provided us with necessary conditions for industry development.At the same time,after the official opening for 4G commercial use license,a large number of internet applications began to explode,and internet content providers also developed rapidly.In 2014,the whole cloud service provider also began to grow on a large scale.Many overseas service providers explored China,which stimulated the rapid development of local service providers.
In the next seven years,as the 5G commercial launch,and with the gradually spread to all walks of life of internet,IoT,industrial Internet and AI,under the digital transformation of traditional industries,I think the China IDC will usher in a new wave,and that wave of growth must be in the process of digital transformation of traditional industries of large-scale implementation.
In the process of transformation which industry is the most directly related to IDC and cloud computing,which is the first one to start transformaiton,as for these wondering,I want to say,digital transformation is a top-bottom process to promote.From the application scenario to the infrastructure transformation,till the entire industry’s overall implementation,the difference for each industry is quite large as well as for the operational demand.For example,the government focuses intelligent city,safe city and digital government.The priority is given to public affairs,such as the application of e-government,people's livelihood security and security.While in education industry,online education,intercommunication between schools and enterprises,and sharing of social education resources are popular demands.We IDC service providers have encountered with fields of energy,transportation and public services early.And the present popular hot spots like intelligent lamp pole,energy internet applications and so on are all exposed to us.And for IoV,new retail and industrial internet logistics,we are all get involved in,feeling the wave of momentum.
Since this round of transformation is the digital transformation of traditional industry,it is different from the previous transformation of digital economy.As mentioned before,the IDC mode of digital economy also needs change to adapt to the digital transformation of traditional enterprise.That is to say,according to the mature experience of IDC accumulated in the previous stage or some of our resources,it may not be an advantage in the future.How can we have the advantage facing the future?There may be several aspects to consider.One is that the traditional IDC enterprise involving information before should jump out this circle,bold and decisive to give up the attractive resources of resale or purely resource type business,start doing some investment and construction,constructing some infrastructure of digital transformation facing traditional customers and traditional industry.
We need to create a good ecological partnership platform.In the last wave of the internet customer age,the main partner of IDC is operator.In the time of the traditional digital transformation,we may not only need operators,but also advantaged partners in other industries,and together with them to face and serve the customer.So we need to build our own ecosystem of partnership.
In addition,for some specific points,there will be a lot of such content sharing today and tomorrow,involving edge computing.The development of edge computing is very hot in recent years.There are many application scenarios,but the overall development is still in a relatively preliminary stage.It has been mentioned that CDN enterprises can be transformed into edge computing nodes with the help of their original distributed nodes,so as to build a service platform of edge computing capacity to derive more edge applications and open up new lines of business.This is also a new way.But it's actually more than that,because there's a lot of demand for edge computing.There are many application scenarios,and its chain is also very wide.For example,with the maturity of IoT,5G's future commercial use has laid a very good foundation for edge computing,so we everyone here needs to pay active attention to these.Operations such as automation,now,with large data centers scale deployments,especially in remote and climatic suitable place to deploy large data centers,but the local operation and maintenance talent there is often insufficient,not means insufficient amount,but insufficient level mainly caused by the underdeveloped talent structure there.The future operational requirements will be more and more high,the IoT is more and more mature,many original equipment will activate the ceiling,so does it for automated operations,it will become more easy to conduct automated operation and maintenance..
At the same time,we can imagine that in the future,the whole data center security level requirements will be higher and higher.Like liquid cooling,the cooling and energy saving of data center is also the inevitable question we need address.From the early computer room to cloud data center,we can find that the energy and heat consumed based on the house and cabinet are more and more,and we are becoming more and more precise on the requirement of regional temperature control.Facing the mass deployment of high power equipment under AI and edge computing,with the application of high density calculation after popularization,the traditional approach of air cooling,heat medium may not meet the demand,thus some new technology are needed.Liquid coolingis recent technology we contact more,relatively gradually mature.However,liquid cooling is also a challenge for data centers.As mentioned above,the liquid cooling data center may not be a data center based on the current traditional architectural structure in the future.Of course,it may be some opportunities for us to think more about it.
Moreover,we have done a lot of work in terms of serving the Chinese enterprise going global.The digitization process is different in different regions all around the world,but I think the happiest thing is the digital transformation in different regions,and their paths are almost the same.Therefore,the excellent experience in IDC construction,operation and management that we have learned from the leading regions can not only be used for the improvement of China market,but it can be gradually transferred to the next future market in my view,such as the southeast Asian market.
These are just a few pieces of information,and there are still over 20 meetings of industrial sharing.I hope you do not miss the wave.Due to the limited time,I need to conclude my sharing,whic is from KZ Consulting,which is also named the China IDC research center.We are good at cloud computing,IDC and other market research as well strategic consulting,served a lot of industrial customers.We are willing to like to communicate with each expert for deeper exchange very much,to promote the development of China IDC industry.
Thank you very much.
Original article by China IDCNOVA, retransmission prohibited without authorization.
For more information, please contact justin@idcnova.com
