25 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 announced at the “ZTE Analysts Conference 2011” which took place in Shenzhen that the company hopes to strategically venture into the IT industry by taking advantage of cloud computing, aiming to pocket over USD2 billion from cloud computing-related offerings in the enterprise market in 2011. These offerings will include datacom products, enterprise networks and servers, and storage products for government networks.

Meanwhile, Mr. Wang Wei, SVP of ZTE Corporation commented that in its traditional telecom-class market, ZTE hopes to become one of the top three solutions providers in the market for operators, providing an entire range of solutions including PaaS (Platform as a service), SaaS (Software as a service), and IaaS (Infrastructure as a Service). On the one hand, the company will put the traditional applications of its operator customers in “cloud”, to re-plan resources against pipes such as the scattered base-stations, redundant storage assets, and servers with unbalanced workload; to maximize the efficacy of assets. On the other hand, it will also work together with the operators to implement innovations in areas including business cloud and application cloud, to explore the industry’s vast opportunity.

Gartner expects that in the global cloud computing market of 2011, the size of the PaaS+SaaS segment will amount to US$84.63 billion, and the size of the IaaS segment will be roughly US$6 billion. That means there is huge space for operators to build PaaS and SaaS and to lease computing capacity and applications.

In 2011, ZTE has demonstrated a clear strategy to venture into the field of cloud computing, to treat cloud computing as one of the new strategic growth areas for the company; and building on this, to venture into the IT industry on a large scale. The company will move forward from multiple dimensions including the telecom-class market, the government network market and the enterprise network market, in addition to cloud terminals and cloud applications. According to ZTE President Shi Lirong, the company expects that 1/3 of its total revenue will come from cloud computing within the next years. 

In this field, ZTE has set up a cloud computing & IT operation division, assigning more than 3,000 people to develop its cloud computing solutions. The company has an entire range of Co-Cloud solutions and has already announced a series of products and solutions including a cloud operating system, SDPaaS cloud deployment, and an App Store-like cloud app platform. As of the end of 2010, ZTE had made 107 cloud-related patent applications in China, No.1 among local companies.