China's Enterprise Cloud Storage Industry Has High Concentration

Source:iResearch June 12,201810:42 AM
Enterprise cloud storage can help enterprises achieve effective management and quick transfer of documents and allow employees convenient access to working materials wherever they are. These features made cloud storage one of the most popular industry nowadays, especially among manufacturers with large and complex enterprise documents, designing& consulting companies and law offices with large demand for file centralized archiving, referring and transfer as well as education institutions with strong demand for knowledge sharing and cooperation. After analyzing the clients of enterprise cloud storage, currently cloud storage shows highest penetration rate in education, finance, IT and energy industries, indicating that these industries are now faced with low difficulty for attracting clients or are the main targets for enterprise cloud storage service providers.
Although China’s enterprise cloud storage market is fast developing, enterprise cloud storage has not become a must in Enterprise IT consumption now. This is because that document storage, management and coordination services provided by enterprise cloud storage companies are in the medium- and high-level demand, but are not in the rigid need for enterprises. 

Meanwhile, enterprise usually put priority to the digitalization of facility improvement, business development, manufacture and other business activities closely related to their business operation, and thus enterprise cloud storage lacks attraction for them. As the booming of ERP, CRM, FICO and HRM systems, enterprise document management demand will be further stimulated and the enterprise cloud storage market will embrace its prosperity with a higher popularization rate and high growth rate. Thus, in recent years, new comers in this industry are usually cautious about their behaviors. On the one hand, the number of Internet companies who entered this field was relatively small. On the other hand, new players in this market have the history of managing large internet platforms and operators or experience in software industries. Considering that enterprise cloud storage industry looks forward to constant investment in the initial stage, the entry barrier for start-ups might be high.
Currently, the concentration rate of enterprise cloud storage is high, and the number of companies who dig deep into this field is small. Large companies entered the market early and have developed large user base and brand advantage. Therefore, the leading companies has acquired a large market share and formed a significant entry barrier of this industry. In the future, some companies are expected to raise more money to further expand their business or search for opportunities for merge and acquisition, or they may encounter risks of strategic shrinks. All these factors will further raise the market concentrate rate for enterprise cloud storage industry.
Currently, Lenovo takes the lead in enterprise cloud storage with a market share of nearly 40%. Its dominant role is significant.

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