Although Chinese officials in Beijing unofficially prohibited the use of iPhones in “sensitive departments,” IBM sees a large market opportunity with the Chinese economy’s quick movement into the mobile era. Recently, IBM made a deal with China Telecom Corp Ltd to provide and manage mobile apps for corporations. CTC is China’s largest cloud provider and fixed-line carrier.
IBM’s latest cooperation with Apple resulted in its MobileFirst service, which helps large corporations utilize iPhone and iPad devices through app management. This service is what China Telecom will host on its servers, following the deal. The main targets of this service will range from start-ups to large, state-owned enterprises in banking and insurance sectors.
Still, recent Chinese government regulations encourage state-afficliated companies to partner with domestic technology firms over international providers. Of course, Western business lobbyists believe this to be an unfair tactic of protection that limits the transferal of technology.
Therefore, the pending success of the partnership between IBM and China Telecom Corp could represent the foundation for international tech companies’ involvement with firms in China.