CHINA FROM THE BRIDGE

Cloud Computing: We believe that the next stage of China's infrastructure spending will be on information technology, if it wants to drive productivity improvements. Whilst consumer penetration of the Internet has already reached 46%, the Internet adoption rate amongst SME's is only 20-15% (McKinsey). China has been successful in developing their home grown consumer Internet platform and we believe that the next stage is the enterprise... With more devices and appliances getting linked up to the Internet and greater data analytical requirements, there will be a substantial increase in demand for processing and storage. We believe that it makes sense for China to avoid the expensive build-out of enterprise scale IT infrastructure and move directly to a more efficient and lower cost cloud based infrastructure, where infrastructure, platform and applications can be offered as services on a consumption basis. IDC believe that China could spend over $1trillion over 2016-2020 on next-..