China Data Center industry, stories from ground zero – 2nd edition

global-switch-suite

New sub class of license of Cloud service in China – AWS / Chinese Investors buying UK’s GlobalSwitch / 21Vianet

It is mentioned in the data center/IDC circles in China that AWS is issued with a Cloud service provider license. This is a new sub-class of license under the IDC license scheme of Ministry of Industry and Information Technoloy (MIIT). Previously, AWS service in China is offered through local company SINNet that fronts, sells, and supports their service.

Before this use Cloud service provider class of license, cloud service providers are made to apply for the Internet Data Center (IDC) license (given the legislation update in 2014 by MIIT to require cloud service provider to get the then only available class of license which is IDC) which comes benefits of being able to operate as a IDC, i.e. selling bandwidth. Therefore while it is harder to get for the local cloud service providders, it is legislatively impossible for foreign cloud service providers like AWS, Microsoft, Google to apply for it. The story on the ground is that this new sub class of Cloud Service Provider license under the IDC class will not be able to offer bandwidth related service, it opens the way for foreign cloud service provider to offer their cloud service directly The details of this new sub class of Cloud Service Provider is unclear yet, it is expected to be officially announced soon.

A group of Chinese investors, lead by China DailyTech (previously a subsidiary of NasDaq listed TBOW:Trunkbow International which is a mobile payment service providers catering mainly to the three main China telecommunications service providers). DailyTech but has dissolved direct subsidiary relationship and became an independent company while having two of Trunkbow founders as its chairman and senior manager. Dailytech, together with China Aeronautical (a state owned enterprise) group’s subsidary AVIC and a few investors and partners (siad to include Sha-Steel, Huawei which are unconfirmed) have joined hands to offer to Aldersgate – the parent of Globalswitch to buy over Globalswitch’s data center assets. Dailytech has three data centers in China and it is belived that China Aeronautical group has half a dozen enterprise data centers in and around China. The DailyTech-AVIC consortium has been in talk with Aldersgate for more than a year, despite the news being said in September 2016 that they are in discussion on the deal.

Warburg Pincus, a private equity fund, had through its China office entered into a joint-venture agreement with 21ViaNet (Nasdaq: VNET) to create a data center asset focused company in China, initially filled with 21Vianet’s data center assets.

I was in Beijing in early December 2016 and met a China based private equity fund, injected with funds from several China listed public companies, are looking for foreign data center assets to buy. I will try to link them up with a couple of contact I have known.

With the presence of Aliyun and ZTE in data centers overseas, this outflow of money into foreign data centers are taking firmer shape.

Reference:

  1. http://news.sina.com.cn/o/2016-11-01/doc-ifxxfysn8409947.shtml
  1. http://finance.huanqiu.com/roll/2015-12/8155561.html

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China Data Center industry, stories from ground zero – 2nd edition

Impression of my first visit to India

I went to Bangalore on 29th November 2016 for a short three days visit and a few things happened before and during the trip.

Firstly, the Indian government had announced a demonetisation of the 500Rs and 1,000Rs (Rs = Rupees) currency notes that took effect with immediate effect. There are insufficient new 500Rs and 2,000Rs notes that replaced them (there is no new 1,000 Rs currency note). All the Singapore money changers I went to, including those in the Singapore Changi airport said they don’t have any Indian Rupees to change, not even the 50Rs and 100Rs ones.

The business associate over at Bangalore assured me that he will reserve some rupees for me, and I had changed some US Dollars for local food and transport before departure.

Fortunately, the money changer at the Bangalore airport do allow foreign tourist (and returning Indian citizens) to changed up to 5,000Rs per passport holder. However, the exchange rate is bad and the commission rate is 5% (XE.com shows 1 SGD = 47 Rs, which the money changer at the Bangalore airport gave 1 SGD = 42 Rs).

Later, I found out that the local taxi from airport to hotel costs 2,000Rs, which fortunately is charged to the business associates’ company and I gave him US Dollars equivalent. If not, I will run out of cash for food and taxi just for two days in India. I cannot imagine ow those tourists and backpackers get by after the shock announcement.

The people I meet with are nice and are genuinely interested in what I do. They have many friends who travelled to or through Singapore.

On my return leg, I shared a cab with Naveen who is my business associate and he is travelling back to his home in Mumbai and we talked a lot and he gives me an impression of upbeat outlook on Indian economy in general and data center industry in particular.

Now the big problem is that I booked for the trip in the last minute, so I did not realize until the airline counter staff told me that my return ticket is one day ahead. The booking was for 1st December 00:05 hours while I was at the Bangalore airport at 21:30 on 1st December. I think the 00:05 timing caught me wrong-footed.

The nicest thing is the counter staff by the name of Marius (I may have remembered wrongly) helped me to book the 2nd December 00:05 hours flight at the best possible price and gave me exit row seat while airline policy is that it is the airline stewardess who can up-sell normal seat to the exit row seat.

I got onto the plane smooth and ready, and Marius came to my seat and gave me a printed copy of my e-ticket and said he has to give me that hardcopy. Wow, talk about the nicest gesture.

I think my first trip to India ended up in a better than good way. I look forward to my future trips to India.

Impression of my first visit to India

DATA CENTER CONFERENCE IN ASIA, 2017 Edition

With 2017 less than 4 weeks to go and my last data center conference in 2016 that I will attend on the 8th of December in Beijing, I will renew this post with only 2017 events.

I was planning to attend one or two data center conferences when I travel around for work and could stay a day or two to attend these conferences and network with people. However, I couldn’t find a website that list all the major data center conferences in Asia, so I started searching and collecting them. Please send me the conference that you are aware of, and I only interested to list those that are data center or cloud focus. The conference has to have at least venue, agenda, and speakers.

It should contain the following information and has confirmed venue, agenda, and speakers. And I will list the conference in the following format:

Month

Dates

City/Country

Title of the conference/show

URL link to the conference/show details

 

2017

Jan

 

 

Feb

17

Bangkok, Thailand

DataCenterDynamics Converged Thailand

CENTARA GRAND HOTEL

http://www.dcdconverged.com/conferences/thailand-2017

 

23

Singapore, Singapore

DataCloud Asia

CAPELLA HOTEL SINGAPORE

http://www.datacloud.asia/

 

Mar

Data to be advised

Shenzhen, China

China Data Center Alliance Exhibition and Conference

http://www.dca.org.cn/content/100653.html

 

April

6

Jakarta, Indonesia

DataCenterDynamics Converged Indonesia

http://www.dcdconverged.com/conferences/indonesia-2017

 

26-28

Tokyo, Japan

Gartner IT Infrastructure and Data Centre Conference (Japanese)

http://gartner-em.jp/dc/

 

27

Hyderabad, India

URL Link: To be available

 

May

 

10-12

Tokyo, Japan

Data Center Expo 2017 (Spring) (Note: exibition only, no conference programme), Tokyo Big Sight, Japan

http://www.japan-it.jp/en/Concurrent-Shows_Spring/DC/

 

24-25

Hong Kong

Data Center World Hong Kong and Cloud Expo Hong Kong

 

http://www.datacentreworldhk.com/

 

June

15

Shanghai, China

DataCenterDynamics Converged Shanghai

URL link: to be available

 

 

July

19-20

Bangalore, India

DataCenterDynamics Converged India

URL link: to be available

 

 

 

Aug

 

Sep

20-21

Singapore

DataCenterDynamics Converged South East Asia

URL Link: to be available

 

 

 

Oct

11-12

Singapore

Data Center World Asia and Cloud Expo Asia

 

http://www.datacentreworldasia.com/

 

 

Nov

9

 

Mumbai, India

Datacenterdynamics Converged IT

URL link: to be available

 

9

Beijing, China

Datacenterdynamics Hyperscale conference

URL link: to be available

 

Dec

 

DATA CENTER CONFERENCE IN ASIA, 2017 Edition