VMware finds footing in China through partnership

VMware Inc, a California-based cloud and virtualization software provider, is ready to "move forward quickly" in China as the country moves "aggressively" in its digital transformation, said company CEO Pat Gelsinger.

"We have a unique business strategy for China. We are excited to see that information technology in digital businesses is becoming increasingly important. Our commitment is to partner with chief information officers and other partners to help them accomplish the objective of digital transformation," said Gelsinger. "We continue to believe in the importance of the Chinese market." Partnering with domestic companies will help high-tech firms gain access to government-funded deals that have been difficult for overseas providers to procure.

The US high-tech company set up a $20 million joint venture in Chongqing with State-owned Sugon Information Industry Co Ltd in November to develop localized cloud systems for Chinese customers. This is VMware's first joint venture with a Chinese information technology company. Beijing-based Sugon will hold a 51 percent stake in the joint venture. VMware called its partner a "suitable" technology supplier for State-owned enterprises and government projects, said Gelsinger, who added that building the partnership with Sugon was an important aspect of VMware's expansion strategy in China. "Sugon owns a few municipal cloud computing projects, areas that we have been unable to reach ourselves," he said.