|By Business Wire||
|May 6, 2014 09:10 AM EDT||
New York and New Jersey, San Francisco and Oakland – just some of the cities that have sprung up alongside one another all over the world, with one often fulfilling functions that the other cannot.
The most obvious such example in China is perhaps Shenzhen, which rapidly grew into a sprawling agglomeration of 7 million people to serve as a manufacturing and services hub for nearby Hong Kong.
Now something similar might be about to happen further north. In late February 2014, China’s President Xi Jinping said it was time for a new approach to “positioning Beijing”.
Although Beijing is attractive because it is the capital, Mr. Xi said some of its functions would be better off located in nearby Tianjin, a much less expensive city with a slightly smaller population that can be reached in about half an hour by high-speed train.
Mr. Xi said Beijing, Tianjin and Hebei Province – which together have a total population of 100 million people – should be considered as one big cluster for planning purposes instead of silo-ed against each other. The Chinese leader added that a shared regional culture and social norms as well as family ties would support such integration.
“China's regions are enormous markets in and of themselves. Tastes and regulatory environments vary significantly between different regions, making it important to recognise their specific characteristics,” said Duncan Innes-Ker, China economist at the Economist Intelligence Unit. “History has also resulted in very different economic profiles among regions. Building on these characteristics has been key to successfully developing local comparative advantages.”
Tianjin is already doing its best to serve as an alternative to Beijing. Its Yujiapu district is aiming to become a headquarters hub for China’s national-level State Owned Enterprises, while the Tianjin Economic-Technological Development Area (TEDA), which is consistently ranked as China’s top development zone since two decades ago, is bent on hi-tech innovation as well.
That means investment in facilities for hi-tech companies that may not be available in the capital.
China’s version of Silicon Valley, dubbed ‘Silicon Hutong’ is located in Beijing’s Zhongguancun district, near the country’s elite universities.
But it’s not an easy place to be for startup firms, many of which must grow without significant outside investment and find a way to cover their costs. Beijing rents alone are as much as three times higher than in Tianjin.
“Many high-tech companies come [to TEDA] from Beijing, and Beijing and Tianjin form a mega-city,” said Zou Fang, Deputy Director of TEDA’s Investment Promotion Bureau.
“The technology achievements and capital mostly come from Beijing. But Tianjin has something special to offer to complement Beijing – that is low costs, development space, government support, and a service mechanism. Many Beijing firms are start-ups that need such a growth environment.”
To this end, TEDA has developed the Tianjin-Beijing Interconnected Entrepreneurship Promotion Center, with Zhongguancun as a key collaborator. It was visited by Chinese Premier Li Keqiang last December.
Such inter-regional initiatives are moving China into the same league as the US when it comes to supporting entrepreneurs. “Innovation is not a zero-sum activity. Different regions have different strengths, not just domestically, but internationally,” said Dr. Olaf J. Groth, Managing Director of advisory firm Emergent Frontiers Group LLC; Professor of Global Innovation, Strategy, Organization & Economics at HULT International Business School; Co-author of the “The Bay Area Innovation System – How the Bay Area Became the World’s Leading Innovation Hub and What Will Be Necessary to Secure Its Future” published by the Bay Area Council Economic Institute.
“In the US, much of the cleantech innovation originates in California, but is highly dependent on partners in other regions, such as the mid-west and south-east of the US, Germany, France, Japan or Korea, where many automobile manufacturers are located,” said Groth. “As more and more domains converge, it makes no sense to tether a venture to one certain location, but rather to let it source its inputs and even to move where it is best supported in a given stage of its growth.”
As a part of the support program to high-tech start-ups, TEDA administrator also purchases products and services from the big Chinese IT service provider Teamsun, such as cloud services, server capacity and technical training, which are then given to tenants free-of-charge.
Although this accounts for just 6 to 7 percent of Teamsun's overall operation, General Manager of Teamsun Zhou Peiyong said it has become strategically important to their business, as down the line the firms that benefit often approach Teamsun directly and become clients.
“We have found that this cooperation pattern has secured its own viable business model, which is win-win for all: to the tenants, to our company as a service provider, and to the whole region,” said Zhou. “In fact, TEDA is the first industrial park ever to have piloted this model in China. And now Zhongguancun is following suit,” he added.
TEDA also offers a wealth of financing options for growing companies. Its status as a development area means there is less red tape to wade through and it is now home to China’s first wholly foreign-invested venture capital firm and China’s first industry-focused private equity firm. There are also nine microfinance firms, creating a robust growth-environment for SMEs.
In late February, TEDA announced the creation of an Internet-based financial services cluster, further working on the convergence among the region’s top-notch IT industry and financial innovation.
“Tianjin has a very solid bricks-and-mortar industry base, including the port economy and trade, etc. That is extremely important critical mass for internet business to thrive because after all the click is there to serve the brick,” said Luo Mingxiong, executive director of China’s Internet Finance Lab and vice-president of Beijing Software & Information Services Exchange.
Luo said more than two-thirds of commercial factoring firm licenses and more than half of financial leasing firm licenses in China are held in Tianjin.
“Tianjin and TEDA have done great work in piloting innovation in the financial service sector. All this is encouraging Tianjin-based enterprises to embrace the innovation economy and create a unique economic landscape.
“On top of this, it’s inevitable that many Beijing-based companies will relocate, driven by factors such as high housing-cost. This is a great opportunity for Tianjin and so it’s imperative that the city works hard to synchronize its planning and overall vision with Beijing,” said Luo.
While Beijing and Tianjin share a cultural identity, some observers argue that different perspectives are also invaluable for stimulating new ideas.
“One of the exceptional attributes that China and the US share is heterogeneity and diversity,” said Sara Sandford, an attorney with the law firm Garvey Schubert Barer.
“The related diversity of perspectives and ideas have often been touted as the foundation of innovation in the US. China has the same unique opportunity to use heterogeneity to the benefit of its efforts to innovate and develop new technology and business...[For regional collaboration to work,] they also need to create an infrastructure that allows for greater sharing of ideas,” she added.
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction. ...
Jul. 2, 2015 04:15 PM EDT Reads: 1,062
"We help to transform an organization and their operations and make them more efficient, more agile, and more nimble to move into the cloud or to move between cloud providers and create an agnostic tool set," noted Jeremy Steinert, DevOps Services Practice Lead at WSM International, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 2, 2015 04:13 PM EDT Reads: 673
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
Jul. 2, 2015 03:18 PM EDT Reads: 719
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
Jul. 2, 2015 03:00 PM EDT Reads: 1,042
"What Dyn is able to do with our Internet performance and our Internet intelligence is give companies visibility into what is actually going on in that cloud," noted Corey Hamilton, Product Marketing Manager at Dyn, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 2, 2015 02:52 PM EDT Reads: 701
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 2, 2015 02:30 PM EDT Reads: 1,242
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 2, 2015 02:15 PM EDT Reads: 2,230
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Jul. 2, 2015 02:15 PM EDT Reads: 929
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Jul. 2, 2015 02:00 PM EDT Reads: 1,093
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
Jul. 2, 2015 01:45 PM EDT Reads: 2,339
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
Jul. 2, 2015 01:36 PM EDT Reads: 702
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
Jul. 2, 2015 01:00 PM EDT Reads: 1,297
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 2, 2015 01:00 PM EDT Reads: 1,085
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
Jul. 2, 2015 12:00 PM EDT Reads: 2,059
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
Jul. 2, 2015 11:50 AM EDT Reads: 633