Cloud Computing Platform Helps China ISVs to Speed-up Product Development and Deliver Software to Customers As A Service
WUXI, China – July 29, 2009: IBM (NYSE: IBM) and Wuxi Software Industry Development Co., Ltd. (Wuxi iPark) today announced the launch of a new smarter IT infrastructure service offering to help Independent Software Vendors (ISVs) in China to dramatically reduce the cost and to speed-up the development of business applications by acquiring technology as a service. The new cloud computing offering also is targeted at helping ISVs reach new markets by providing the ability to sell their software solutions hosted as Web-based services to customers around the world.
The collaboration will accelerate the growth of software application business in Wuxi iPark, supporting the Chinese government’s mission of making the Wuxi District a major software development center in China. China expects to see the emergence of a handful of ISVs each generating revenue of RMB 100 million annually, and hundreds of mid-sized to small ISVs in the Wuxi District which collectively create annual revenue of RMB 60 billion, including software export of RMB 7.7 billion (or US$ 1.1 billion) by 2012.
The Web-based services, offered through the new Innovation Incubation Platform, is part of Wuxi iPark’s RMB 120 million IT infrastructure investment. Built on a software service research project from IBM code-named “Pangoo”, it includes software development, software engineering, software service technical incubation and market monitoring as well as operational and hosting services. Developed by IBM Research – China, it integrates the technology and concept from cloud computing, software-as-a-service and software engineering as a service (SEaaS).
China is emerging as one of the world's major markets of software development and outsourcing services. According to China’s Ministry of Industry and Information Technology, the software industry generated revenue of RMB 757.29 billion in 2008, up 8.3 percent from the previous year, and the software export was valued at US$ 3.38 billion.
However, the industry is facing several challenges such as a lack of advanced software development platforms as well as a large technical skill shortage. To survive and be more competent in a rapidly evolving environment, software companies or ISVs recognize the need to have agile software development processes to shorten the lifecycle from software product development to market.
As service subscribers, ISVs located in Wuxi iPark can leverage the Innovation Incubation Platform to conduct project incubation, development and testing. ISVs can remotely access a vast resource of computing at any time, just as they use utilities and other shared services. Service fees will be imposed according to usage. This new business model allows the ISVs to reduce their IT investment and related maintenance and free up their capital and resources for other business activities such as sales and marketing activities. This ability helps China’s ISVs, especially start-ups, combating the current financial recession.
Thanks to the open standards-based technology architecture and an innovative development methodology, the Innovation Incubation Platform allows software development to be done by team members located in different cities in China in a shared IT environment. As a result, ISVs can increase their response to market demands and requirements.
The new service also supports ISVs’ transformation into business application service providers. As one of the early subscribers to the Innovation Incubation Platform, Delversoft Company Ltd. completed development of the new version of its Baking Management Service (BMS) Solution in six weeks. The new software product is delivered as a service, hosted for customers in the Innovation Incubation Platform. As Delversoft’s flagship product, the BMS Solution has been well received in the industry nation-wide. With the software as a service version of the BMS Solution, Delversoft is able to reach out to new customers located across the country and provide for them the benefits of acquiring the technology as a service without the up-front costs of new software and hardware and installation plus accruing on-going IT service and maintenance.
By providing advanced IT resources and environment as a value-added service, Wuxi iPark operates under a new business model. Unlike other software parks or science parks in China, Wuxi iPark can now provide greater services beyond the typical office space, general management support, and basic facilities, such as water and electricity.
Said Zhou Qian, Secretary, Wuxi New District, Committee of the Community Party of China, “We are pleased that Wuxi iPark is able to leapfrog to the latest technology model around cloud computing and SaaS. This allows us to set a solid foundation for us to achieve the goal with Wuxi iPark as a major source for software development outsourcing.”
“We are committed to supporting the government in growing ISVs in China.” said Dr Thomas Li, Director, IBM China Research Lab and CTO, IBM Greater China Region. “With IBM’s advanced technology and business solutions based on industry insights, we are able to provide consultancy, incubation and training to help fuel a growing technology ecosystem throughout the country. Through the joint efforts with the government, we are able to enhance provide substantial support to ISVs in China, assisting them to explore new markets.”
IBM Research – China has been working directly with clients and ISVs under the “In-Market Research” initiative to create replicable, cloud-delivered, industry-specific services in the areas of ERP, CRM and supply chain management. For example, IBM and Beijing eFuture Information Technology Inc. have launched a Software-as-a-Service (“SaaS”) Solution for the retail distribution industry in China. The solution has been implemented at select Beijing Wangfujing Department Store Group (“Wangfujing Group”) stores in Beijing, one of the largest retail groups in China, helping thousands of Wangfujing Group’s suppliers to exchange business information, arrange payments online and access purchase orders and conduct other business activities. When the system is fully operational throughout the Group’s stores in 17 cities across China by the end of 2009, the Group will be able to share the supply chain information real time with 20,000 suppliers.
About Wuxi iPark
For more information, please visit:
www.ipark.net.cn/e_ipark_en/0/0.chtml (link resides outside of ibm.com)
About IBM Research
For more information, please visit:
www.ibm.com/research