reaching china with your website & cloud applications
TRANSCRIPT
Demystifying China OnlineReaching China with Your Website and Cloud Applications
Presented by Sponsored by: Featuring:
The Opportunities
Opportunities
China is home to the world’s largest online population
© 2013 Forrester Research, Inc. Reproduction Prohibited
By 2015 more than 700 million Chinese will have regular access to the internet
© 2014 Forrester Research, Inc. Reproduction Prohibited 5
The numbers in China far exceed those of other mature eCom markets
There are more internet users in China than there are people in the US
© 2013 Forrester Research, Inc. Reproduction Prohibited
Similar to other markets with high internet penetration, the online population in China is very social on the internet
• Beijing• Chengdu• Dalian• Guangzhou• Nanjing• Ningbo
• Shanghai• Shenyang• Suzhou• Wuhan• Wuxi• Xian
Metro China cities surveyed:
The majority of the population has access to the internet - and uses it
© 2013 Forrester Research, Inc. Reproduction Prohibited
Online shopping behavior in China is unprecedented for an emerging market
Projected Online Retail Sales For 2013 And 2017: The US And China Lead eCommerce
Forecast: Online Retail Spending In China (B2C And C2C), 2012 To 2018
© 2013 Forrester Research, Inc. Reproduction Prohibited
eCommerce Readiness Index Ranks China as #2
© 2013 Forrester Research, Inc. Reproduction Prohibited
Mobile is a key touch point
Challenges
Forrester’s clients say about doing business in China…
Operational challenges are not intuitive
Laws/regulations are difficult to navigate and constantly
evolving
Local expertise is difficult to acquire
You need local relationship to survive
China needs to be treated as a separate entity – not as an
expansion of existing business
The “Great Firewall of China” creates unique problems
› Router blocks:• 97% of international routers are blocked
• 3% of internal routers are blocked
› Preferential treatment from agency to agency• Grounds for blocking are inconsistent and subjective
• Some blocks are temporary or due to internal agency mistakes
› All domains are subject to being blocked• Over 2,500 foreign domains are blocked in China – including some of the biggest and
most used in the U.S. including Facebook and Twitter
› Lag in load time• Loading a non-Chinese hosted webpage takes an additional 10-15 seconds when
accessed in China
© 2013 Forrester Research, Inc. Reproduction Prohibited
17
Response time in China is far slower than that in other markets
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
Online consumers prefer link saturated sites
Web content hosted outside of China often has performance challenges
TCP/IP round trip time
Http round trip time (for
a single object)
Firewall filtering
Response time for a
single object
Response time for a
typical web page
Between China and US/Europe (measured on a single
object)
600MS 2,000 – 3,000 MS 450 MS ~3 seconds 20-30
seconds
Your users in
China will feel the
pain!
Southern China:
Telecom territory
Northern China:
Unicom territory
The great divide between the north and the south …
Source: China Internet Network Information Center (CNNIC)
Nearly 50% of internet users in China are in rural areas where the internet connection is unreliable and processing times are extremely slow
Licensing requirements can be a barrier to entry when hosting a website in China
› Beian (Record Bureau) & Gongan (Public Security Bureau) Licenses• Required for all websites hosted and delivering from within the Great Firewall
›Internet Content Provider (ICP) License• Required for all websites with a shopping cart
›Additional licenses may be required for:• Education
• Healthcare
• News/media
• Pharmaceutical
In the case of Uniqlo, the holding company and the flagship site also had to be registered on the ICP license
Some content is easier to host in China than others
Content Type Likelihood to be blocked
Adult/pornography Forbidden
Gambling Forbidden
Political Forbidden
Anti-government Forbidden
Religious High
User-generated (SNS, BBS, blog, sharing) High
News High
Gaming Medium
Entertainment Medium
Software Low
Enterprise Low
e-Commerce Low
Option #1: Move content closer to the greater China area
Hong Kong and
Singapore are two
common hosting
locations
Content distribution speeds with content closer to China
Http round trip time (for a single
object)Firewall filtering Total delay (for a
single object)
With direct peering
connection to all three major ISPs
in mainland
100 MS 450 MS 550 MS
No direct peering connection 300 MS 450 MS 700 – 800 MS
The limiting factor
with this option is
poor connectivity and
firewall filtering
Challenges with hosting close to China, but outside of China
› Choosing a hosting provider can be tricky › The great firewall blocks IP› Sites hosted on the same server (or same IP block) as questionable content will also be blocked
Option #2:Host content in Mainland China
Southern China:
Telecom territory
Northern China:
Unicom territory
The great divide between the north and the south requires mirrored sites
The sparse bandwidth between the south and the north means you need mirrored sites in both territories
Setting up websites in China is a complex operation
› Businesses must apply for a government-issued license - licenses vary for each type of site
› The rules for obtaining licenses are confusing and procedures unclear
› Rules and regulations for obtaining a license change frequently
› Licenses takes longer to acquire and are under more scrutiny for western brands
› Local operation requirements
Option #3: Hosting externally with a CDN within China
Geographic
coverage is key
Using a CDN significantly reduces delivery time
Don’t do anything
Hosting close to China Hosting in China With CDN
acceleration
User performance
3 seconds (for a single object) 450 MS 10 – 300 MS 30 MS
Efforts involved
Easy Medium: Finding a good hosting provider can be challenging
High: Business must do everything. Finding a hosting provider, applying for licenses and keeping up with regulations
Easy to Medium: CDN partner manages licenses and regulations
ROI Time Frame
N/A – will see little incremental growth
Slow Medium Fast
Criteria to choosing a CDN partner in China
› Local coverage• Being able to deal with the north-south divide
• Deliver good performance all over China
› Local know-how and expertise • Knowing how to deal with the evolving regulation landscape in China
• Manage regulatory compliance for you
› Local relationships• Good relationship with local ISPs and network peering points
Criteria to choosing a right CDN partner in China
› Global operations• The ability to deliver content in and out of China
› Global know-how• A mature business that knows how to do business with multi-national companies
› Global management• Let you have a global understanding of how your web content is being delivered
› Mobile optimization• Help optimize the payload sent over the network by compressing images and
page structure based on current network conditions (e.g., 3G versus 4G), thus helping the slow lane go as fast as possible.
Global Content Delivery Network• Accelerating over 40,000 sites across 140+ PoPs around the globe•Only Global CDN with a presence inside of Mainland China (25 PoPs)•Integrated solutions: Performance, Security and Scalability•Industry leaders in reaching emerging markets
Great Firewall – Slower Websites
40% slower download time
64kB object downloaded from Test agents inside of China
• Guangzhou (inside China)• Hong Kong (outside China)
Source: NetworkBench results, Sep. 2012
Distance = LatencyD
ow
nlo
ad
tim
e (
sec)
Lond
on
Pari
s
Gen
eva
Fran
kfur
t
Osl
o
Mad
rid
Mila
n
Ista
nbul
New
Yor
k
New
Del
hi
Los A
ngel
es
Sao
Paul
o
Toky
o
Sydn
ey
Seou
l
Kual
a Lu
mpu
r
Buen
os A
ires
Taip
ei
Chen
gdu
Hon
g Ko
ng
Beiji
ng
Gua
ngzh
ou
Sing
apor
e
Xian
0
10
20
30
40
50
60
70
80
Site performance degrades as distance increases
Source: Source: CDNetworks network monitoring POP latencies, 2012
Also found increasing load time of the page from 400ms to 900ms – led to 25% reduction in traffic
Why Does it All Matter?
Faster Sites Perform Better
Found a 100ms of delay reduced revenue by 1%
Found that speeding up their website by 5 seconds increased their conversion rates by 7-12% and doubled # of visitors from search engine traffic
Sep-2
011
Oct-2011
Nov-2011
Dec-2
011
Jan-2
012
Feb-2
012
Mar-
2012
Apr-2012
May
-2012
Jun-2
012
Jul-2
012
Aug-2012
0100000002000000030000000400000005000000060000000700000008000000090000000
100000000
Social Gaming CustomerGo-Live: Feb. 2012
3.7x traffic in 6 months
Source: Source: CDNetworks Performance Monitoring, 2012
The Options…
Add more Datacenters• Attempt to get close to end-users• Expensive• Complex• Sync problem• Doesn’t solve performance issue
1
HW Appliances• Expensive• Need IT team• No support for remote
end users
2
Traditional CDN• Only focused on caching• Doesn’t support client-server
apps
3
AD
CW
OC W
OC
CacheCacheable
Non-cacheable
Get Faster and More Reliable Web Performance in China
CDNetworks Presence In China
25 Points of Presence (PoPs)
In-Country Experts•Content•Licensing•Regulations
End to End Reach• Bypass unstable peering
between local ISPs
Superior Performance• Speed, Security and Reliability
China Acceleration
•Creates a ‘Fast Secure Tunnel’ over the Internet•Quickly deliver websites & applications globally to and from China•No CAPEX for Hardware / Software•In-country experts – licensing requirements, regulations, & monitoring•Fully integrated and managed services
China Acceleration
Result:
Bally Reduces Load Time By 81%Improving Online Shopping Experience in China
Opportunity: 27% of all luxury goods are consumed by Chinese Shoppers. By 2015, they will account for 35% of all luxury goods sold.
ChallengesBally launches bally.cn in 2011:
• Required optimization to comply with local regulations• Rich media resulted in poor web performance• Spotty in-country peering increased website latency
末(end)
www.uschina.org www.cdnetworks.com www.forrester.com