Cisco will invest $16 million in the new firm, holding a 20 percent stake, while TCL will inject $64 million for the rest 80 percent share of the initiative, TCL announced on its website on Friday.
TCL said the team-up with Cisco was due to its plan to develop the public enterprise cloud services platform to build on the business potential of cloud computing on the Chinese mainlan.
Initial services offered through the platform include cloud-based online meeting, web conferencing, audio conferencing and video conferencing applications.
A successful partnership with Cisco in the past was another reason that prompted the cooperation between the two firms, TCL said in the statement.
Through an offshore affiliate, TCL will name four directors to oversee the joint project, while Cisco will name one. The affiliate will also decide on the core management team, according to a Reuters report.
Cisco’s partnership with TCL came after other US tech giants’ clouding expansion in the country. In December 2013, Amazon.com announced it will extend its AWS cloud-computing services to the world's largest populated market. IBM unveiled similar services to the country in the same week.
Also On Friday, the Hong Kong-listed TCL Communication Technology also posted a positive profit alert to the stock exchange, saying the sales of handsets and other products as well as smartphones and other smart devices totaled 48.6 million units and 25.9 million units in the quarter ended September, representing year-on-year surges of 35 percent and 162 percent, respectively.