IDCC2018/IDCICF voice|Yang Guang: how China IDC enterprises going global

December 12-13,2018,hosted by the organizing committee of China IDC Industry Annual Ceremony,undertaken by IDCNOVA and CloudBest,the 13th China IDC Industry Annual Ceremony(hereinafter referred to as"IDCC2018")was held in China National Conference Center(aka CNCC),Beijing.“Enabling corporate digital transformation”,this conference attracted officials and experts from MIIT and CAICT,as well as executive,guest and media from the operator and service providers of internet,IDC and cloud computing.

The 2018 IDC International Cooperation Forum(hereinafter referred to as IDCICF)was held on Dec 13,2018.Guests from home and abroad conducted in-depth discussion on digital economy era,pulsing the global IDC update and trends,focusing on hot spot,exchanged and communicated to share the mutual development opportunities.

At the forum,Yang Guang,vice president of Beijing Daily Tech Technology Co.,Ltd.delivered a wonderful speech on China IDC overseas layout.The following is the transcript of speech(not verified by the speechmaker himself)


  Yang Guang,vice president,Beijing Daily Tech Technology Co.,Ltd.

Hello,everyone!I’m Yang Guang from Beijing Daily Tech,and today I want to share some experiences on going global of our company with all of you here.

As a operation service provider specializing in IDC infrastructure,we are dedicated to all-life-circle data service on planning and design,consulting,construction,operation and maintenance.We hope to act as the Force expert in the internet industry,the Force here is a salute to the Star Wars,hoping to provide supporting foundation for the mass IT enterprises with development power.Established in 2009,Daily Tech get involved in IDC industry and started its international exploration,by 2016,we took the first and young step in Hong Kong in the international process.2017 laid the foundation for our overseas development.So far,we have 2 data centers under operation globally and 3 under construction in Singapore,Frankfurt and Silicon Valley respectively.

The past 10 years had witnessed the tremendous changes to our life brought about from the mobile internet.As for data,when the human being flew to the moon for the first time,the total amount of data used is only 79kb to achieve this miraculous adventure in the history,however,by 2017,the total amount of data generated in just one international flight has reached by 57tb.With the economic and technical developments,the data we generated and are going to utilize is increasingly becoming the important resources for enterprise development.As the crucial infrastructure of data storage and treatment,data center is becoming the corner stone of digital economy.

Based on the overall development of digital economy,from the perspective of IDC service provider,we considering to provide specific service for our customers aiming at going global. Regarding the layout of Daily Tech IDC,we followed the general situation of first-tier plus second-tier cities domestically,that means Beijing,Shanghai,Guangzhou,Shenzhou and Huzhou nearby Shanghai,as well as relevant resources in Henan,Shanxi and Hunan.

Given the international view,in the past 5 years,the average growth globally is about over 10%.The market size in 2018 is estimated at 53 billion dollars with more than 10%growth rate steadily.The growth rate of Asian markets including Southeast Asia,China and India will keep around 30%and the domestic growth for China IDC market alone will be approaching 40%。

In 2013,Daily Tech successfully cooperated with China Telecom Global(CTG)and reached a strategic cooperation agreement with Global Switch,which is headquartered in the UK.Daily Tech’s president also led the effort to bring Chinese capital into the international company's stake,and the capital from Chinese enterprises accounted for 74.99%by June 2018.

To become global enterprises,there are several regions that China IDC enterprises must explore.First of all,Hong Kong,Singapore,Japan and South Korea in Asia.As for the European and American markets,the European data center is in Frankfurt,but in fact,the nodes are in Amsterdam and London.For the United States,we hold that it’s divided into the east and the west coast.The network hub connecting the Asia-Pacific is the west coast,and the east coast is the basis for connecting Europe.If we can get through the global network,the data nodes from China to the rest of Asia,then Hong Kong and Tokyo must be chosen.Thus east to the west,it’ll connected to the United States of America.If starting from China to the west Europe,then the first stop will be Stockholm or Frankfurt,then it goes to London,and the east coast of USA followed.Only by all the above implementation,can we realize the layout of the global network.To be honest,from the perspective of IDC,if you don't go to the first-tier international cities,you can't achieve to become a global company.But of course,very fierce competition will be encountered with in the world's first-tier cities.

The globalization of Chinese enterprises is inseparable from Chinese characteristics.Only by following the path of globalization with Chinese characteristics can we truly go global.When we compete in the first-tier cities in the world,we will find that the competitive disadvantage is very large,although the market is very good,after all,we are competing with the local giants who have operated there for many years.Our advantage is that the Chinese internet companies are going global,then we can follow them,and that’s a real advantage for us.The path taken by Chinese internet companies is not in line with that of first-tier international cities,but in line with the trend of Chinese economy,which will certainly serve China's economic development.Our strategy of globalization also needs to be combined with the country's"Belt and Road"strategy.The"Belt and Road"still needs to take the route of Europe more detour to the United States,and our real purpose is to enter the United States.We still need to follow China's"Belt and Road"and the footprint of Chinese enterprises in the global economy.Now we are also considering the layout of first-tier cities,and we must do something in countries along the"Belt and Road"to accomplish during the international process of the Chinese enterprises.

Why Hong Kong is chosen by us as the first node for going global?Hong Kong still has great advantages.After all,it has the same cultural background and the same characters.We set up 2 data centers in Hong Kong.The first one is relatively small scale,1000 racks.The second one has about 3500 racks.

In April 2017,we conducted a joint cooperation with China Telecom and Global Switch and signed a strategic cooperation agreement,giving full play to their respective advantages in the world,expanding the data center,and carrying out global cooperation in the transfer of corresponding businesses.The data center was officially put into use on December 13,2017.

Singapore and Hong Kong are nodes of data centers for Asia.Seen from the global map,Singapore is more of a place where resources of finance,personnel,logistics and submarine cables meet and intersect.It is a place where data centers can play a global role.So the second stop was Singapore.

Europe has a large number of countries with small land are.Given the cross-border network traffic flow,the data connection for Asia and Europe will enter Europe mainly through Russia and central Asia.The first node in Europe is Stockholm or Frankfurt.As the center of the European central bank and the gathering place of financial information,Frankfurt is very close to Singapore.So the first stop in Europe is Frankfurt,which serves as the link between Asia and Europe,as well as the very important consideration of serving financial customers.

Nodes in the United States,we considered a lot in the east and west coasts to choose which city.Now we are qualified in west coast to set up data center,which is a reasonable choice for us,after all,it’s their top priority for many Chinese companies to deploy and release in California as the first Silicon Valley is chosedn.SAN jose is also a hot spot for new competition.China Mobile also bought a building to prepare for data center.

It is not the ultimate goal for Chinese enterprises to focus all the global data centers on the first-tier markets.We are considering the emerging markets and making corresponding consideration and deployment.As early as 2016,we already began to pay attention to the Indonesian market.However,at that time,the Indonesian market was characterized by a large population,a high proportion of young people and the rapid rise of smartphone penetration at 40%,which would usher in a wave of peak demand for mobile internet applications.However,there are many local IDC suppliers and the vacancy rate is very high.At that time,the project was put on hold from a conservative perspective.Since Alibaba and Tencent took the lead in entering the Indonesian market,the local electronic payment has been booming and the deployment of data centers has been rapidly expanded.The biggest difference between the developing countries and the first-tier developed countries is that the risks are really great.After all,the political stability,economic stability and the whole local legal environment are very similar to China 15 or 20 years ago.Because we do not know enough about local contacts,we will face great challenges as a foreign capital.If we can reach a consensus with our IDC users or internet enterprises in China,our layout in advance is feasible.

Among Indonesia,Malaysia,India,India market is more troublesome,it's really a very big market,but it's also a very conservative market.Also,central Asia,northern Europe,and South Africa,are all under our consideration for the next step.

Thank you!

Original article by China IDCNOVA, retransmission prohibited without authorization. 

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