What is Cloud Technology and How Does It Work in China?


Cloud technology (also known as ‘cloud computing’) is when servers, storage, databases, networking, software, and analytics are hosted on the Internet and stored in large privately-owned data centers.

Instead of investing in physical hardware, businesses subscribe to these services and pay either a monthly or annual fee determined by the amount of data and number of users a business requires. Employees can access business applications online while company data is backed-up either online or in a physical data center.

Using Cloud technology not only allows business to save money on IT costs, it also keeps employees around the world better connect with their colleagues, clients, and partners.

In China, data centers that store and connect user data are ‘isolated’ from global networks.

The Chinese government requires that data related to the privacy of its citizens, or connected with the country’s physical and digital infrastructure, must be stored in mainland China. This means that although cloud-users outside China can still communicate and collaborate with their China-based colleagues, both must use separate user accounts and thus cannot access company data from a common source.

Similarly, companies headquartered outside China can still manage China-based company systems and data by using a Chinese user account. However, these users will experience slower connection rates.

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