Chinese personal computer (PC) maker Lenovo announced on Wednesday it will establish a joint venture with US-based data storage company NetApp Inc focusing on storage gear and data management, in a bid to be a leader in global intelligent transformation.
The news was announced at the Lenovo Tech World 2018 in Beijing. The joint venture is expected to be running by spring 2019.
Lenovo and NetApp had a strategic alliance previously. They will jointly develop storage products that use Lenovo’s ThinkSystem brand under the alliance. These new products will be manufactured by Lenovo and utilize NetApp’s software, Lenovo said in a statement it sent to the Global Times on Wednesday.
The cooperation also aims to promote digitalization of enterprises in the ongoing intelligent transformation, said the statement.
“The partnership is about two strong companies joining forces, and it is a great opportunity for the US technology company to gain an early foothold in the world’s fastest-growing storage market,” an industry insider, who spoke on the condition of anonymity, told the Global Times on the sidelines of the meeting on Wednesday.
“Through the joint venture, NetApp can sell the new products, including storage products and data management software, that are jointly developed by the two, to Chinese companies,” the insider said.
The arrangement will also help Lenovo to map out a global strategy through cooperating with NetApp, according to the insider.
By 2022, global Internet of Things spending is expected to total nearly $1.2 trillion, with China accounting for $300 billion and becoming the largest market, according to data presented at the forum.
“We see China as one of the most important IT markets in the world, and we believe this is where the world’s leading enterprises will be and are already located. NetApp has the world’s No.1 flash storage technology, and with Lenovo’s advanced supercomputer system, we could provide a comprehensive portfolio of products, solutions and services that is unrivaled in the market today,” NetApp Chief Executive George Kurian said on Wednesday at the Lenovo conference.
Other world-leading technology companies have been expanding in China. Intel and Baidu just announced they would establish an AI-5G lab in China.
Rui Yong, senior vice president and chief technology officer of Lenovo, told the Global Times on Wednesday that in Lenovo’s global strategy, talent and technology are the priorities.
It is now cooperating with the Massachusetts Institute of Technology in blockchain and voice recognition technology development, according to Rui. – Global Times