UPDATED 00:22 EDT / MAY 31 2016

NEWS

Dell & Qualcomm announce key partnerships in China

Dell Inc. and Qualcomm Inc. are the latest U.S. firms to announce key partnerships with Chinese organizations aimed at expanding their presence in the Middle Kingdom’s massive market.

Dell is investing in a Chinese startup with the aim of gaining more traction in one of the world’s fastest-growing tech markets, while Qualcomm has said it’s to create a joint venture alongside the government of China’s Guizhou province.

The partnership between Dell and a cloud startup called Guizhou YottaCloud Technologies Co. Ltd., a subsidiary of Guizhou Wing Cloud High Technology, was announced by the China Daily website. The China Daily quotes Dell CEO Michael Dell as saying that Dell has been partnering with the startup’s parent firm since last year. His comments came during an appearance at the China Big Data Industry Summit in Guiyang, Guizhou province, last week.

According to the report, Dell will provide technology in order to support cloud solutions and services that Guizhou YottaCloud plans to sell to Chinese firms. The partnership will give Dell access to the important market for small and medium sized businesses within China, which has the second-largest IT market in the world behind the U.S.

The announcement comes after Dell announced in September 2015 that it plans to invest a massive $125 billion in China over the next five years, as part of its “In China, for China 4.0″ strategy. The new partnership represents Dell’s most visible efforts in China since that announcement.

As for chip maker Qualcomm, its Chinese expansion plans were revealed by the Wall Street Journal during an exclusive interview with the company’s president Derek Aberle. The executive discussed Qualcomm’s plans to create a joint venture with the Guizhou government that will allow the firm to build and sell its processors in the country. Qualcomm is better known for its systems-on-a-chip (SoCs) for smartphones and other mobile devices, but this deal is related to its chips for data center servers.

Qualcomm first announced its Chinese joint venture in January of this year, saying it would own 45 percent of the new enterprise, with the remaining 55 percent being held by Guizhou’s government.

The deal is a double win for Qualcomm because not only does it help secure more markets for its SoCs, but it will also help fulfill its desire to sell greater numbers of its ARM-based server chips. It’s a growing segment that’s becoming increasingly important for Qualcomm as growth in the smartphone market shows signs of stalling.

“This is really going to be the primary vehicle from which we build our data center business in China,” Aberle told the Wall Street Journal. “We are actually trying to create the company that is going to be able to win the market here as opposed to just licensing old technology.”

Image credit: Unsplash via pixabay.com

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