Thursday, March 28

China Unicom and AliCloud Set to Form a Joint Venture

China United Network Communications Group and Ali-Cloud have announced that both the companies are getting into an association and teaming up for the purpose of getting a better tap into cloud business opportunities.

This joint venture has been registered in Beijing with a capital of 353 million yuan ($51.4 million). The basic idea behind the establishment of this venture is to meet the growing demand from China’s governmental institutions and State-owned enterprises for cutting-edge software and information technology solutions.

“The new company will leverage China Unicom’s infrastructure capabilities, and nationwide operational services in the government and enterprise markets, and combine Alibaba’s prowess in cloud computing, big data and artificial intelligence,” China Unicom stated. “We aim to build the joint venture into the strongest software provider for government institutions and enterprises, with a focus on sectors such as e-governance, finance, public security and manufacturing.”

In this partnership, a 51 percent stake in the new company will be held by China Unicom, while AliCloud, on the other hand, will hold 34 percent. The remaining share will be held by Hangzhou Jiashiyun Network Technology.

Through this move, China Unicom is making an effort to deepen its mixed-ownership reform, during which Alibaba has become one of its key investors.

The new company will be led by Liang Baojun as the chairman, who was the general manager of China Unicom. Hu Xiaoming, the president of AliCloud, on the other hand, will serve as the company’s vice-chairman.

“When it comes to cloud computing, mobile carriers have an inherent advantage in that they are already connecting all industries via telecom infrastructure, including automobile, electricity, aviation and energy,” Hu said.

Xiang Ligang, the founder of telecom industry website cctime.com, said the cooperation will put a great pressure on other telecom carriers, such as China Mobile and China Telecom.