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.

The joint venture builds upon Cisco’s 18 years of doing business in China and its strong local relationships with two Cisco Gold Partners that implement Cisco products and solutions in China, both of which are under China Electronics Technology Group Corporation.

This joint venture represents another way for Cisco to capture a greater share of a total information and communications technology market in China, which will grow from $99 billion in 2010 to an estimated $176 billion in 2014. Both companies have also agreed to a comprehensive plan that will protect the technology and intellectual property of both organizations, and ensure compliance with all governing laws.

The joint venture continues the long tradition of partnership between American and Chinese companies, helping Cisco to grow while also fostering innovation and socio-economic development in China.

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About China Electronics Software Information Service Co., Ltd.
China Electronics Software Information Service Co., Ltd is jointly owned by China Electronics Technology Group Corporation (CETC) and a state-owned company located in Shanghai, and specializes in cloud computing products, Internet of Things, basic software, system integration and endeavors to become a leading company in China’s software and information service industry.

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Hilton Romanski

No Longer with Cisco