Japan’s NEC (6701.TYO) and Neusoft (600718.SH), one of China’s biggest software companies, have agreed to form a joint venture offering cloud computing services in China, the Financial Times reported. NEC said it expects the Chinese market for cloud computing, where services and storage are shared and sourced over the internet, to grow to US$2.3 billion by 2012. China’s IT services industry generated aggregate revenue of US$10.6 billion last year. NEC China president Masaki Kidowaki said state-owned enterprises are a core target group for cloud computing services. Neusoft president Wang Yongfeng said the new joint venture would also target manufacturers with global export business lines, as well as domestic small and medium-sized enterprises that would benefit from cost savings by using cloud computing.
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