| TOKYO, July 15
TOKYO, July 15 Silicon Valley-based VMware Inc
said it will form a cloud computing partnership with
China Telecom Corp, expanding in China at a time when
many U.S. technology firms' businesses there are experiencing
fallout from a cyber security squabble.
VMware said on Tuesday it will work with China Telecom to
build a hybrid cloud service to be operated by the state-owned
company, China's biggest cloud service provider. Hybrid services
can be used to combine private infrastructure such as
on-premises data centres with public cloud services.
U.S. equipment and software providers such as IBM Corp
and Cisco Systems Inc have seen their China
sales drop after last year's revelations by former National
Security Agency contractor Edward Snowden of U.S. spying.
"To us, we think about Snowden, we think about these
allegations going back and forth, and it's disappointing,"
VMware Chief Executive Pat Gelsinger said in an interview on
Tuesday following announcements of partnerships with China
Telecom and Japan's SoftBank Corp.
He said, however, that allowing China Telecom to sell
products under its own brand made it easier to do business in
"In the face of that bigger negative aura, we do a huge
partnership with China Telecom. It emphasises that we can be
partner-led, it doesn't have to be our brand on our service."
VMware, owned 80 percent EMC Corp, will provide the
software stack to be operated by China Telecom, which will
target sales of hybrid cloud services to large and mid-sized
companies as well as government departments in China's
fast-growing cloud computing market.
(Editing by Jane Merriman)