BEIJING Aug 7 International Business Machines
Corp said on Thursday it would provide cloud-based risk
analysis for a Chinese financial data firm in a deal that
executives heralded as a model for future business in China,
where state-owned enterprises are increasingly shunning foreign
technology on security grounds.
Under the new software deployment model, financial data
provider Shanghai Wind Information will send publicly available
data to IBM's cloud for risk analysis without having to disclose
specific portfolio holdings or having to install IBM software or
hardware on its servers.
"This is an innovative deployment model in that IBM never
receives client information," Andrew Aziz, IBM's director of
risk analytics, said in an interview.
Aziz added that the new business model "continues to comply
with the local laws, including data privacy laws in China and in
all countries in which it operates."
The new deployment model underscores the challenges facing
U.S. technology companies in China following Edward Snowden's
revelations of extensive U.S. government spying and security
vulnerabilities in American-made hardware.
Citing national security concerns, the Chinese government
has encouraged its state enterprises to wean themselves off
foreign hardware suppliers and reportedly ordered state banks to
pull out their IBM gear earlier this year.
IBM has been particularly targeted due to the sensitive and
critical role its servers play in practically every major
industry from banking to energy.
IBM executives on Thursday declined to discuss the company's
business in China more broadly but said they believed the new
cloud-based deployment model would help it succeed in the
The company disclosed in April that sales in China fell 20
percent in the first quarter, and executives have repeatedly
sought to reassure investors that the IBM's future in the
country remained positive with a series of partnership
agreements with Chinese agencies.
IBM said in July it would donate $100 million in big data
software and provide technical training at 100 Chinese
universities as part of an major agreement with China's Ministry
The same month IBM unveiled a project with the Beijing
government to predict and control air quality using the
company's big data processing technology.
(Reporting by Gerry Shih; Editing by Mark Potter)