For years, piracy prevented China from establishing a strong computer software market, according to Reuters. Thanks to cloud computing, however, it has become more difficult to create pirated versions of popular softwares needed to run a business, Kai-Fu Lee, former head of Google China, believes.
In 2010, predictions for profits by Chinese software developers hovers at about $6.2 billion. Meanwhile, American software companies stand to make $99. 2 billion.
“China has been plagued by piracy for the last 20 years and that unfortunately has caused China not to have a software industry,” Lee told Reuters in an interview at the Abu Dhabi Media Summit.
After leaving Google, Lee started a $115 million venture to aid the growth of the Chinese software market. Innovation Works focuses heavily on the development of cloud computing in China. Microsoft recently expressed hesitance to established a larger presence in the nation because of its poor intellectual property rights.
Weeks following Lee’s resignation from Google China, the search engine and cloud computing giant discovered a breach that it later traced back to two Chinese schools. The company threatened to withdraw all operations from the country and to stop censoring search results. Reuters reported that the nation and the company are currently in talks over a solution.ADNFCR-2178-ID-19664940-ADNFCR
Source:http://www.edlconsulting.com/newsdetail.php?id=698&headline=Cloud_computing_key_to_establishing_a_Chinese_software_market
