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Rumor: China Unicom Starts Operation of Cloud Subsidiary

Sohu IT, 12/20/12

China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) cloud computing subsidiary has reportedly begun operations, which currently center mainly on marketing and sales for the operator's cloud platforms and products. Unicom's cloud computing company presently employs several dozen people, and is reportedly headed up by Hainan Unicom GM Jiao Gang as general manager. The company is expected to grow to more than 100 employees in 2013.

According to previously announced plans, China Unicom will establish major data centers in the cities of Langfang, Dalian, Wuxi, Dongguan, Nanning, Hohhot, and Chongqing over the next three years. The operator has selected thirteen cities, including Beijing, Tianjin, and Shanghai, as key areas for Internet data center (IDC) business development.

China Telecom (NYSE: CHA; 0728.HK) announced in March 2012 that it had established an independent cloud computing subsidiary for marketing, operations, and product R&D. The company's main businesses are in IDC and content delivery network (CDN) services and in cloud servers, cloud storage, and other services based on its cloud-computing infrastructure.

Editor's Note: For more background on this topic, please see "Rumor: China Unicom to Launch Cloud Computing Subsidiary" MD 11/23/12 issue and "Rumor: China Telecom to Establish Cloud Computing Subsidiary" MD 2/13/12 issue.

Keywords: Jiao Gang Hainan Unicom China Unicom storage telecom CDN cloud computing Internet data center 0762.HK 600050.SH CHU HR

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