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Businesses in the Asia Pacific region are keen on cloud computing, but generally prefer private cloud deployments. To meet this demand, independent cloud provider Eucalyptus Systems (news, site) is expanding into APAC, with a newly opened regional headquarters in China.

Eucalyptus is a California-based startup that develops open-source private cloud software meant for organizations that want to maintain their own cloud deployments. The platform works with various flavors of Linux, and interfaces well with Amazon AWS. Eucalyptus can also work through virtualization.

Eucalyptus is offered in two editions, the open-source Eucalyptus and the Eucalyptus Enterprise Edition (EEE), which is enterprise-grade software designed for large-scale deployments. The company's clients currently include academic institutions, government offices and private businesses.

Eucalyptus in China

Eucalyptus has already made inroads into the Chinese market, where the software is said to be popular among IT departments. Claude Zhou Qun, who will lead the China office, is confident that Eucalyptus can match the need for private cloud deployments in the Chinese and APAC market.

Eucalyptus software is quite famous in technical circles in China, where it is commonly referred to as 'An Shu,' which means 'Eucalyptus tree,'" says Zhou Qun. "I have worked with many open source software products in China, and I've never been more excited than I am now to offer Eucalyptus to help Chinese businesses build affordable, modern IT infrastructure."

The APAC Market for Cloud Services

The Chinese market is known to prefer private rather than public cloud deployments, which is a regional nuance that stems from security and privacy concerns. Businesses and regulatory agencies are averse to storing data in offshore servers, and are worried about information being intercepted through the public networks.

Even with these concerns, China is seen as a big market for software services. China is the world's second largest economy and the largest, in terms of Internet user base, with 450 million. Additionally, the market for cloud services in the APAC region is also expected to increase through the medium term, according to IDC reports.

The Asia Pacific region is seen as a growth market in content management services, valued at US$ 1.3 billion (excluding Japan) in 2011. This is expected to grow by 40% annually until 2014. Meanwhile, the Japanese market for cloud computing services is expected to grow to US$ 29.2 billion by 2015. Eucalyptus' focus in the APAC market is timely, given the industry predictions for the medium-term, as well as the region's rebound from the worldwide economic slump that ended in 2010.