ChinaCache continues rally after obtaining cloud credential


China's IT ministry (MIIT) has granted ChinaCache's (CCIH +2.6%) cloud computing and storage services the status of "Credible Cloud Services." ChinaCache says it's now one of ten firms to have attained the credential. (PR)

Competition within China's growing cloud infrastructure market has been picking up. Amazon, IBM, and China Unicom each unveiled Chinese cloud infrastructure offerings last month. Alibaba, which launched its AliCloud platform in '09, remains the market leader.

ChinaCache shares are continuing their massive 2014 rally (previous); they're now up 64% YTD. Bullish analysts and SA authors have been trumpeting the company's low price/sales multiples for a while.

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Comments (1)
  • enihcam
    , contributor
    Comments (28) | Send Message
     
    China market is the largest market over the world, in all kinds of industries. Different from North America and Europe, the CDN business is simply just beginning. With waves of 4G/Cloud/IOT coming, more and more start-ups start thinking of network service scalability, and CDN is the most economic and efficient way to help them from bandwidth limitation and delay impacting there business. China has potential momentum at least equal to current value of US in CDN market. Let's take a look. Akamai almost represents the CDN market value of US today, which is 8B, whereas ChinaCache today is only 320M. Even if ChinaCache can only reach 1/10 of Akamai, its value will be over 800M.
    12 Jan 2014, 11:47 PM Reply Like
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