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Oracle, Tencent sign deal on cloud computing in China

Oracle and China-based Internet service provider Tencent signed a nonbinding agreement for Oracle to use Tencent's online portals to offer Oracle cloud services in that country.

Oracle is taking steps to begin offering its cloud services in China. On Nov. 12, Loic Le Guisquet, president of Oracle's operations in Europe, the Middle East and Africa and the Asia Pacific region, announced that the vendor had signed a nonbinding agreement to support cloud computing in China with Tencent, an Internet service provider based in Shenzhen.

Le Guisquet was joined at Oracle CloudWorld in Beijing by Roger Li, managing director of Oracle China, and Dowson Tong, senior executive vice president at Tencent and president of its social network group. Under the terms of the agreement, Oracle will be able to offer its cloud services in China through Tencent's Internet portal.

Tencent was founded in 1998 and is currently China's largest ISP and online portal provider. It provides value-added services for the Internet, mobile computing and telecommunications.

In a blog post on the Forbes website, Oracle said that it and Tencent plan to integrate Oracle's cloud services with Tencent's web portal. The agreement includes software-as-a-service, platform-as-a-service and infrastructure-as-a-service products based on, but not identical to, existing Oracle technology. Oracle's goal is to eventually be able to establish a data center in China. However, Oracle and Tencent will first establish a business collaboration committee to determine their next steps.

Tencent focuses on the consumer market, rather than the business and enterprise market that is Oracle's specialty. But according to the blog post, at the Oracle CloudWorld event, Le Guisquet, Li and Dowson said that the partnership between Oracle and Tencent is representative of the convergence of consumer and business applications. Le Guisquet added that the deal would give both current Oracle customers and small businesses in China access to cloud services.

This isn't the first time Tencent has partnered with an American company. In 2005, it teamed up with Google and incorporated the latter's search engine into its platform. Tencent also partnered with IBM, signing a business cooperation memorandum in October 2014. Tencent and IBM agreed to work together on software as a service for the public cloud with a focus on small and medium-sized enterprises.

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