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CITIC Telecom CPC, STNC to set up Shanghai cloud data center
CITIC Telecom International CPC's subsidiary China Enterprise ICT Solutions (China Entercom) and Shanghai Science & Technology Network Communications (STNC) signed a cooperation agreement to set up a cloud computing data center in China, to be launched in October.
The partnership follows CITIC Telecom CPC acquisition of the China Internet Data Center/ Internet Content Provider (IDC/ICP) license in March. It is also expected to raise STNC's competitiveness in the cloud data center market.
The data center is expected to be launched this October. The data center will provide IT infrastructure and a cloud computing services platform with "stable network access for customers," according to CITIC Telecom CPC in a media statement.
As a carrier-neutral data center services provider with an internet data center license, STNC operates two data centers in Shanghai with over 2,000 racks. It is one of the pilot testing units for the China next-generation internet (CNGI) Customer Premises Network (CPN) under the auspices of the National Development and Reform Commission (NDRC).
Yucheng Deng, president, STNC said, "The cloud computing solutions, including the SmartCloud one-stop integrated suite of cloud capabilities, of China Entercom and its parent company CITIC Telecom CPC, together with the strong infrastructure of STNC will boost STNC's competitiveness in the cloud computing data center market."
At the same time, CITIC Telecom CPC and China Entercom will leverage STNC's extensive operational experience and strong technical support capability to strengthen the partnership between China Entercom and its business partners for gradually rolling out its IDC operations.
Stephen Ho, CEO of CITIC Telecom CPC, said, "The cloud computing data center in Baoshan, Shanghai is just the first step in our commitment to launch IDC projects in major cities after securing the China IDC license, while other first-tier cities such as Beijing and Guangzhou will be the next."
"STNC's operational experience in data center infrastructure brings reliable operational support for our data center in Baoshan. The advanced design of the Baoshan data center also fulfills our strict requirements on the technical capability of our IDC. Both of us are confident about this collaboration and hope to extend our partnership to build new data centers in the near future," Ho added.
The partnership between CITIC Telecom CPC's subsidiary, China Entercom and STNC expands the company's nationwide operation network, complementing the seven existing cloud computing centers in the Asia Pacific region. Enterprises can thereby enjoy quality data center services and crossregional cloud services deployment with high efficiency and cost-effectiveness.
In addition to the Baoshan cloud computing data center co-established with STNC, CITIC Telecom CPC is also expanding its coverage to key cities including Beijing, Guangzhou and Shenzhen.
Strong internet data center growth in China
According to the "2013-2014 Research Report on the Development of the IDC Industry in China" issued by IDCQuan.com, the market size of the IDC industry in China in 2013 amounted to RMB26.25 billion, representing a growth of 24.7%.
The increase was driven by the development of cloud computing and big data business as well as the rise in demand from internet customers. Among these factors, the cloud computing market holds the greatest potential. The market size of the IDC market in China is expected to reach RMB54.83 billion by 2016, a growth of more of more than 30%.【Click to download PDF】