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China Unicom
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Unicom, Alibaba to expand collaboration in cloud computing services in China

The plan marks the first cooperative venture with a strategic investor after the partial privatisation of Unicom’s Shanghai-listed parent

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China Unicom and Alibaba will deepen their cooperation in cloud computing in the first such deal since Unicom’s part privatisation. Photo: Reuters
Bien Perez

China Unicom, the world’s sixth-largest mobile network operator by number of subscribers, and e-commerce powerhouse Alibaba Group Holding plan to ramp up their collaboration in cloud computing services.

The partial privatisation of Unicom’s parent, Shanghai-listed China United Network Communications, saw Alibaba and rival internet giants Baidu, Tencent Holdings and JD.com take a combined 12.88 per cent shareholding in Unicom’s Shanghai-listed controlling shareholder.

“This represents the first major business cooperation with a strategic investor after China Unicom’s mixed-ownership reform plan was approved,” said the telecommunications operator in a statement on Monday.

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Unicom, which had 276.9 million mobile subscribers as of the end of September, said “building a power alliance with Alibaba” would help both companies expand their cloud services across different industries in China.

Cloud services enable companies to buy, lease or sell software and other online digital resources on demand, just like electricity from a power grid.

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These operations are hosted in data centres, which are secure, temperature-controlled facilities that house large-capacity servers and data storage systems, and are equipped with multiple power sources and high-bandwidth internet connections.

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