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Rumor: NDRC Dispenses RMB 660 Mln in Cloud Subsidies

China Securities Journal, 11/25/11

China's National Development and Reform Commission (NDRC) distributed the first batch of cloud computing industry subsidies - totaling RMB 660 mln - last month to more than 10 firms involved in 15 pilot projects in Beijing, Shanghai, Shenzhen, Hangzhou, and Wuxi.

Recipients include e-commerce conglomerate Alibaba Group subsidiary Alibaba Cloud Computing ("AliCloud"), internet giants Tencent (0700.HK) and Baidu (Nasdaq: BIDU), Shanghai East-China Computer (600850.SH), and integrated IT service provider Teamsun (600410.SH). Alibaba and Baidu each received a subsidy of more than RMB 100 mln, while sums received by East-China, Teamsum and others ranged between RMB 15-20 mln.

According to the source, the NDRC will conduct annual assessments of the 15 projects over the coming five years to determine which will be eligible for continued funding. The NDRC, however, has not yet determined whether it will solicit new projects next year, and if so, the size and nature of funds to be allocated.

The source also revealed that China's Ministry of Industry and Information Technology (MIIT) has completed an initial draft of its national standards for cloud computing technology, which are currently open for internal review and comment. The standards aim to encourage development of cloud computing applications and services and establish cloud computing data centers in suitable areas outside the five trial cities, as well as outline financial support for cloud computing.

Editor's Note: For more information on this topic, please see "Chinese Government Offers RMB 1.5 Bln in Cloud Subsidies," MD 10/19/11 issue.

Keywords: government subsidy national standard hardware software Baidu Tencent MIIT East-China Computer cloud computing NDRC Teamsun 0700.HK 600410.SH 600850.SH BIDU AliCloud Alibaba Group


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