The nation's most used Web search provider will invest more than 10 billion yuan to set up its own cloud-computing centers, said a recent Reuters report.

Alibaba, an online commerce giant, has developed its own cloud-based operating system in a bid to explore the cloud market for personal use.

Challenges ahead

Looking forward, the nation's cloud-computing industry is full of opportunities but will also face challenges, analysts said.

China's vigorous cloud strategy is set to face challenges as the market continues to grow. For example, talent shortage may hinder further development of the industry, said Morris from IDC.

The importance of companies' IT talent inventory will determine how the company will adopt cloud-computing technology, he said.

Other challenges could be even more alarming.

According to the CCWResearch report, only about 20 percent of the nation's cloud-computing facilities have been put into actual use. Some heavily invested cloud centers are lying idle and become vanity projects, said the report.

"Most of the investment was used to build servers, data memories and other hardware infrastructure, but the investors failed to recognize how to facilitate the hardware and integrate cloud services to existing offline businesses," it said.

With construction of cloud-computing centers across the country slated to finish in three years, the industry is unlikely to see any more big investment deals like that of Baidu.

The government and companies have to realize that adopting the idea of the cloud is not as simple as setting up data centers. More importantly, the users will need a sharper vision in cloud-related sectors such as mobile Internet and a series of data analysis systems.

"The cloud can't be planned, funded or executed without ties to mobility, social, big data and industry transformation," Morris said.

Moreover, concerns over data security will also challenge cloud services because the core idea was to put all the information in a single place.

"The government should better regulate the country's cloud services in the future," CCWResearch suggested. "The regulators will need to closely watch the service providers in every sector and areas to guarantee the healthy development of the industry."

Contact the writer at gaoyuan@chinadaily.com.cn

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