ChinaSoft prospers on growth of cloud computing in China
Microsoft distributor plays down benefit from Beijing's scrutiny of foreign players
Although Microsoft Corp is among US technology firms caught up in Chinese security worries and antitrust probes, a local software company in which the Seattle giant is a strategic investor is riding high on the growth of cloud computing.
Chen Yuhong, the chief executive of ChinaSoft International, says its success owes more to Chinese firms' readiness to latch on to global trends like the cloud than from Beijing policies that have cut into orders from state enterprises for goods made by foreign players. Microsoft owns 5 per cent of ChinaSoft.
A leading Microsoft distributor in China, selling information technology systems and outsourcing services, ChinaSoft saw first-half profit jump 43 per cent to 115 million yuan (HK$145.4 million).
Founded as an US$81,000 start-up spun out of a government firm, the Hong Kong-listed company is now worth more than US$600 million.
"The biggest change has been the arrival of the cloud and the impact of cloud computing," Chen said.
China's spending on cloud services rocketed to 80.4 billion yuan in 2013, according to the China Software Testing Centre, and the market is expected to grow more than 60 per cent over the next three years.