Further, since education benefits significantly from investment by a central government, the education system is only going to get better over time. Education systems that rely on private funding work well, but assume that all of your smart people will have access to learning, and that isn't true of current systems. Many of your brightest and apt people may not get opportunities to advance.
Need proof? Discussions with HP networking executives about the cost and quality of their software development process for the Comware software in the new networking division they acquired with H3C, and which is fully developed in China, and you'll hear some very interesting points of view.
Because cloud hosting businesses can buy computer goods close to source of manufacture, they will enjoy significant capex reductions. This means greater profits since the huge capital requirements to start a cloud host drains the bottom line. Lower capex means greater profits in the short term.
At some point, the Chinese economy will start to inflate (if it hasn't already), and their manufacturing cost base will be more expensive than some other countries' (Burma, Indonesia, Philippines, Kenya, Namibia, Botswana). Chinese society will develop into providing and supporting value-added services. Of course, the language barrier is significant, and services such as cloud computing are ideal for services model.
Cloud Compute Loads are Dynamic
It likely that some hosting is going to stay local in some countries because there is always a place for some local business and manufacturing, even if just a boutique or service for special interest groups.
