Hon Hai, NEC reportedly to partner on cloud business

28 Apr

Japanese IT provider NEC Corp. and Taiwan’s Hon Hai Precision Industry, also known as Foxconn, will partner on cloud business in the Asian market and will start providing joint cloud services this year, Japan’s Nikkei reported April 26.

According to the report, the partnership will combine NEC’s cloud technology and Hon Hai’s datacenters and network of clients in China and Taiwan. NEC’s datacenter in Japan will also be connected to Hon Hai’s facilities to provide data protection.

The Nikkei report said the two sides will use Hon Hai’s large-scaled datacenters in Kaohsiung, Taiwan and Guiyang, China to provide cloud services and will also deploy NEC’s datacenter operations management software and its latest communication systems to build stable services. Citing the terms of the deal, the report noted the two sides will also introduce their respective clients to each other.

Even though NEC has been providing cloud services to third parties, its business remains mostly domestic and its expansion into the overseas market has been slow, the report said. With the partnership, NEC reportedly hopes to tap into the cloud market in Asia, where demands are high, and aims to boost its cloud business revenue to 120 billion yen by the 2017 fiscal year.

Hon Hai will attempt to accomplish a similar goal as NEC, but it will not shift away from its main focus of manufacturing products for Apple, the report said.

(News source: MoneyDJ)

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