IBM has officially entered into China's lucrative cloud technology market through a joint venture with Wanda Internet Technology, a sister company of the Chinese conglomerate Dalian Wanda, IBM announced on Sunday.  The joint venture firm will be known by the name Wanda Cloud Company.

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The Wanda Cloud Company will officially go on floor in 2018. The newly launched company will seek to utilize the IBM's state-of-the-art cloud infrastructure for offering superior cloud services to Chinese enterprises. The Chinese companies will also in turn get an access to IBM's other advanced technologies such as watson supercomputer and blockchain technologies.

IBM declined to shed light on size of the Joint venture deal and the revenue sharing model. The joint venture also marks Wanda group's entry into China's fast growing cloud business market. It will now compete with Chinese E commerce giant Alibaba, which has started taking its cloud business seriously after entering in the cloud industry as early as 2009.

IBM was earlier in talks with popular Chinese internet company 21Vianet Group. However, the talks supposedly failed. As per the Chinese regulation, foreign companies need to form a joint venture with Chinese companies to make an entry into the country's cloud business market.     

The cloud business boom is not just confined to China alone. Globally, it is growing at a phenomenal pace that has eventually paved way for hordes of small companies, who today are competing with giants like Microsoft, Amazon and IBM. The research firm Canalys expects the global cloud computing market to grow to roughly $135 billion by 2020.

TagsIBM, Wanda Grup, Dalian Wanda Group, china, Cloud computing