According to the Cisco Visual Networking Index, China’s internet traffic will grow 600 percent in the next two years. At that point, China will also be home to nearly a quarter of the world’s broadband users and 21 percent of the world’s connected devices. This substantial growth, combined with the country’s rapid urbanization, opens the door to many new business opportunities.
With this in mind, Cisco today announced the latest in its strategy to capitalize on the growing China market, a US$ 200m joint venture with China Electronics Software Information Service Co., Ltd. Cisco will contribute 43% and China Electronics Software Information Service Co., Ltd 57% of the joint venture funding. The joint venture agreement is subject to the appropriate regulatory approvals.
The joint venture will provide valuable end to end solutions for public services and industry applications. For example, one solution may be an education cloud to help parents, teachers, and students in schools all across China access the latest education material through interactive whiteboards, laptops, tablets, and other devices.
Based in Shanghai, the joint venture will create new, open standards-based products not currently offered by Cisco, and integrate those new products with existing technologies and create cloud-based solutions including cloud storage, cloud management and network transportation, for public and private projects in China.