The following year will have spur in technological space in china as Microsoft initiates the addition of four data centers in China at the beginning of 2022. The plans to expand the service capacity in Asia are the key for the move.
In March, the company expanded rapidly in China. The company announced the new planned data center in China that offers cloud services to benefit the customers and partners in the new China North 3 region. It promises to provide high availability and maximum tolerance to failures in the data centers. Due to high customer demand and scope for local business enhancement, the new data center will be present in Hebei province.
The technology giant has already set up six data centers in the country, with the local partner 21Vianet. Since the pandemic hit the businesses, most companies shifted to digital platforms and cloud services for improved internet services and customer engagement. The company, therefore, aims to utilize the trend and bets on the surge in demand globally for cloud services.
A plunge in the migration to cloud services by the Chinese businesses drove the growth. The Chinese government took drastic steps to shut down the tech firms concerning the data security threats, additionally prompted to expand the local enterprise businesses in data management by increasing IT spending.
China is a prosperous country, with the cloud services sector expected to grow to $46 billion in 2023. The local businesses are a priority; therefore, the company plans to associate with them, aiming spike in data storage and management needs. However, the giants like Alibaba Group Holding Ltd. and Huawei Technologies Co. that dominate the domestic cloud infrastructure throw high competition to Microsoft.
Since China is a developing country in technology, cloud applications and Office 365 will host improved solutions to the customer’s needs now and in the future. As a result, the company plans to double its expansion in cloud services in the future.
Microsoft’s cloud sales in the March-ending quarter increased 33% to $17.7 billion, and the company’s capital expenditures were $6 billion. Further, the company plans an event on the 24th of June to show the new operating system version, which has enhanced features. The company kept the high momentum of shares in the last week, rising 0.61% to $259.43 per share. It has jumped 19% since the beginning of this year, as per NASDAQ.