On October 14, 21Vianet (VNET) Group has signed an MoU with Alibaba to deploy IDC services. 21Vianet is a leading carrier and cloud-based internet data center services provider in China. According to reports, the project will be deployed in two phases and estimated to generate a revenue of RMB1.6 billion in its first phase.
IDC services are a list of tools that help in conducting fact-based research in the field of information technology. It assists business and IT leaders in achieving sustainable competitive advantage. After the signing of MoU, Alvin Wang, the President, and CEO of 21Vianet stated that it is an exciting time for organizations working in the field of cloud technology as it continues to thrive. “We are thrilled to play a key role in supporting Alibaba Group. This MoU testifies our in-depth domain expertise and proven technology solutions in IDC industry and ability to deliver on time as our customer expands,” said Mr Wang.
21Vianet Group provides services like hosting, cloud services, and business VPN to improve reliability and data security. It operates in more than 30 cities throughout China and enjoys a dedicated customer base of more than 5,000 enterprise customers. The consumer base is extremely diverse, ranging from Internet service providers to government entities and blue-chip enterprises to MSMEs. Alibaba is one of the biggest retail and e-commerce companies in the world.
Amidst the trade tension between the US and China, VNET has registered an intraday hike of 15.79% in yesterday’s trading. Earlier, Alibaba’s Vice Chairman also stated that the company would not be affected by the slowdown. It seems that the signing of MoU with Alibaba is going to benefit VNET in the long-term. As per analysts, the shares of the firm are expected to stay either neutral of overweight in the medium and long term.