As noted in an article on DigiTimes, the strategic cooperation agreement will enable VMware to deliver its hybrid cloud services through China Telecom. And according to David Sung, corporate vice president and president of Greater China for VMware, the demand in China for hybrid cloud services is expected to take off in 2015.
Sung told DigiTimes he expects to see "explosive growth" in the Chinese hybrid cloud services market in 2015. It's not surprising, considering the growing market in China, as well as the fact other cloud vendors have likewise seen opportunity and signed strategic deals to get their cloud services into the market. Both Microsoft and Alibaba have launched their public and hybrid cloud services offerings in China.
This is an extension of an existing cloud presence VMware already has in China. A Reuters article indicated the VMware hybrid cloud service will be operated by China Telecom, which is itself a state-owned telecommunications firms.
The Reuters article also noted that some technology companies have experienced a decline in sales to China, mostly because of the revelations brought to light last year by Edward Snowden.
The VMware hybrid cloud service delivered by China Telecom has been in the works since the summer, and the two companies are nearing launch date. According to Sung, VMware's approach to hybrid cloud services is "more accessible" than its competitors' offerings.