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VMware to form cloud computing partnership with China Telecom

15
Jul
2014

By Teppei Kasai TOKYO (Reuters) – Silicon Valley-based VMware Inc said it will form a cloud computing partnership with China Telecom Corp, expanding in China at a time when many U.S. technology firms’ businesses there are experiencing fallout from a cyber security squabble. VMware said on Tuesday it will work with China Telecom to build a hybrid cloud service to be operated by the state-owned company, China’s biggest cloud service provider. U.S. equipment and software providers such as IBM Corp and Cisco Systems Inc have seen their China sales drop after last year’s revelations by former National Security Agency contractor Edward Snowden of U.S. spying. “To us, we think about Snowden, we think about these allegations going back and forth, and it’s disappointing,” VMware Chief Executive Pat Gelsinger said in an interview on Tuesday following announcements of partnerships with China Telecom and Japan’s SoftBank Corp. He said, however, that allowing China Telecom to sell products under its own brand made it easier to do business in China.

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