Chinese internet service provider Capital Online will collaborate with Google to introduce the global tech giant's cloud service in Mainland China.
The disclosure was briefly made on Capital Online’s official WeChat account on Tuesday before being removed. Chinese media have however termed the news as reliable.
There have been sporadic talks of Google’s plans to introduce its cloud service in the country for quite some time now.
Earlier this month, Bloomberg had reported that Google was in talks with local tech major Tencent, IT company Inspur and other organisations on the issue.
Tech portal Yuntoutiao even reported that Google is negotiating with several central government-controlled enterprises for the purpose.
While the US company prepares to make inroads into China, Chinese tech major Alibaba has been forced to put its own cloud business expansion in the US on hold, The Information recently reported. The news portal attributed the setback to the company’s failure to match swords with Amazon Web Services and other local players.
Capital Online was founded in 2005 and got listed on the National Equities Exchange and Quotations in August 2008. During its initial days, the company functioned more as an internet data centre. Later it shifted its main business to Cloud services.
According to its financial report, Capital Online earned an income of USD 41 million in H1 2018, up by 28% since the corresponding period last year. The company reported an operating profit of USD 3.3 million, which is 15.27% higher than H1 2017 figures. Its net profit of USD 3 million in H1 2018 is 11.22% higher than its H1 2017 performance.