Future sales of ‘CoCloud’ OS & cloud computing solutions
expected to account for 1/3 of total revenue

18 May 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today demonstrated its complete range of cloud computing solutions for the first time, including its proprietary ‘CoCloud’ cloud operating system. The entire range was unveiled at the China Cloud Computing Conference in Beijing.

With the ‘CoCloud’ operating system at its core, ZTE’s cloud computing solutions consist of various platforms to manage IT resources, virtual computing, cloud operating management and cloud security. Together with a range of cloud applications, the solutions cover all industries from traditional telecoms markets to government and enterprise markets. ZTE also officially announced the establishment of its Global Cloud Computing Center in Nanjing at the same time.

ZTE had previously made its new commitment to emerging technologies such as cloud computing and integrated circuits (IC) known with the release of the 2010 annual report earlier on March 18th. “It is our ambition to use cloud computing to account for a third of ZTE’s total revenues,” said Mr. Shi Lirong, President of ZTE. The establishment of ZTE’s Global Cloud Computing Center in Nanjing, is considered as a significant milestone for ZTE’s cloud computing strategy.

"Cloud computing has revolutionized the traditional resource provision methods as well as user application methods in most computing aspects. Under the new industrial framework, we are expecting to introduce radical changes in both IT and CT market as for open up new opportunities for industry players.”

After several years of R&D and experience in cloud computing, ZTE has developed its own definition of cloud computing. From ZTE’s point of view, cloud computing is a technical architecture framework, and commercial application model based on the cloud computing technology. The core of the cloud computing development should include following key elements: cloud computing technology, complete network architecture, key issues, and commercial model innovation based on cloud applications with cloud operating system as the key element. Comparing to the traditional OS, ZTE’s CoCloud cloud operating system accelerates the dynamic transfer of the resources through service process displaying, intelligent resource template suggestions, good adaptation and heterogeneous management of the services.

In the coming year, ZTE will continue its development into cloud computing and applications with telecom operators especially on the transformative aspects of the technology. In addition, ZTE has made numerous partnerships with governmental agencies and enterprises on the cloud development of E-governmental, E-affair, and intelligent transportation. This presents an opportunity to enter the IT market from a different perspective and provide improved solutions to both government and enterprise customers.