IBM and Tencent have today announced that they plan to work closely together to extend the latter's public cloud to the enterprise (presumably the bulging Chinese market).
Tencent is one of China's largest service providers with nearly one billion Chinese users; its online portfolio is primarily a consumer one and includes QQ, a popular instant messaging service, Weibo, a rival to Twitter, TenPay, which competes with PayPal, Qzone, a Facebook competitor.
IBM gains access to one of the world's largest markets while Tencent gets to tap into IBM's extensive technology portfolio. The memorandum of understanding (MOU) mentions the common will to "build and market" a new "class of public cloud" that will target verticals.
The core components of that offering will include cloud migration and integration services as well as a range of tailored SaaS (software-as-a-service) packages ranging from customer care to digital marketing and even enterprise asset management.
Both companies will jointly "promote industry innovation" and will pool resources and global capacity where necessary to "benefit enterprise customers".
The two will initially focus their efort on fast growing small and growing enterprises in the smarter care and smarter cities markets.