Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

IBM offers cloud-based services to Chinese firms to address security concerns

TechnologyAug 07, 2014 08:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Gerry Shih and Matthew Miller BEIJING (Reuters) - International Business Machines Corp said on Thursday it would provide cloud-based risk analysis for a Chinese financial data firm in a deal that executives heralded as a model for future business in China, where state-owned enterprises are increasingly shunning foreign technology on security grounds.

Under the new software deployment model, financial data provider Shanghai Wind Information will send publicly available data to IBM's cloud for risk analysis without having to disclose specific portfolio holdings or having to install IBM software or hardware on its servers.

"This is an innovative deployment model in that IBM never receives client information," Andrew Aziz, IBM's director of risk analytics, said in an interview.

Aziz added that the new business model "continues to comply with the local laws, including data privacy laws in China and in all countries in which it operates."

The new deployment model underscores the challenges facing U.S. technology companies in China following Edward Snowden's revelations of extensive U.S. government spying and security vulnerabilities in American-made hardware.

Citing national security concerns, the Chinese government has encouraged its state enterprises to wean themselves off foreign hardware suppliers and reportedly ordered state banks to pull out their IBM gear earlier this year.

IBM has been particularly targeted due to the sensitive and critical role its servers play in practically every major industry from banking to energy.

IBM executives on Thursday declined to discuss the company's business in China more broadly but said they believed the new cloud-based deployment model would help it succeed in the market.

The company disclosed in April that sales in China fell 20 percent in the first quarter, and executives have repeatedly sought to reassure investors that the IBM's future in the country remained positive with a series of partnership agreements with Chinese agencies.

IBM said in July it would donate $100 million in big data software and provide technical training at 100 Chinese universities as part of an major agreement with China's Ministry of Education.

The same month IBM unveiled a project with the Beijing government to predict and control air quality using the company's big data processing technology.

(Reporting by Gerry Shih; Editing by Mark Potter)

IBM offers cloud-based services to Chinese firms to address security concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email