$100 million Inspur-ation for Cisco's China strategy

Joint venture to help lift Borg out of doldrums

Cisco has revealed the first concrete outcome of its new China strategy, inking a deal with the server maker best known for helping build the Tianhe-2 supercomputer.

The Borg has long complained that China has been getting in the way of growth. Most recently, the company sent the broom through its executive suites before announcing a US$10 billion plan to revitalise the region.

Now, Chuck Robbins has gone public with the first fruits of that plan during an official visit by Xi Jinping to the US.

Cisco and Inspur are to spend $100 million on a Chinese joint venture that will start with a resale operation, ultimately expanding to “deliver other advanced technologies and services in areas including IT infrastructure, cloud, data center, smart cities, and big data”, Robbins writes in the blog post.

Robbins calls this an “important first step towards the previously announced $10 billion”.

Although he noted that the China market is showing signs of a turnaround, as recently as this May, Robbins' predecessor John Chambers said the ongoing weakness in the country lopped 7 per cent off the Asia Pacific region's growth.

In 2013, Inspur laid claim to shipping China's first home-grown high-end server. The company also co-developed the country's Tianhe-2 supercomputer with the National University of Defense Technology (NUDT). ®

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