EMC Set up JV with Digital China
EMC Corp, the world’s largest data storage company, set up a 50-50 joint venture with Hong Kong-listed Digital China in March this year, aiming to tap into the country’s booming IT market.
The new venture—EMC’s first in Asia—is expected to provide information infrastructure solutions, services and support for the Chinese market. It will also help the two sides to attract partners in the information storage sector.
EMC, by shifting to software sales over the years, has now become an information management company. It planned to invest $1 billion in China before 2012 to gain a larger share in the country’s data storage market as China has witness explosive growth in websites and internet content.
According to American IT research firm IDC, the total storage capacity in China will grow 30-fold from 132 petabytes in 2004 to nearly 4,000 petabytes in 2011.
EMC is also expecting the new venture to help serve the needs of its customers in China since Digital China, the country’s largest IT products distributor and systems integrator, has been trying to enhance its IT services business.
“This is about how we grow in the years ahead in China,” said Steven Leonard, president of EMC Asia Pacific-Japan. “China is now one of the world’s fastest growing and strategically important markets.”
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