November 1, 2012, Shanghai -- The Shanghai municipal government, Microsoft Corporation (NASDAQ: MSFT, hereafter referred to as "Microsoft") and 21Vianet Group, Inc.(NASDAQ: VNET, hereafter referred to as "21Vianet") announced today that they will join hands to expand Microsoft's advanced enterprise-class cloud services—Office 365 and Windows Azure to China. Mr. Ai Baojun, member of the Standing Committee of the CPC Shanghai Municipal Committee, deputy mayor of Shanghai; Mr. Jiang Liang, Vice Chairman of Shanghai People's Political Consultative Conference and Director General of Pudong New Area; Mr. He Lefu, global senior vice president of Microsoft, chairman and CEO of Microsoft Greater China Region, Dr. Ya-Qin Zhang, global senior vice president of Microsoft, chairman of Microsoft Asia-Pacific Research and Development Group, and Mr. Chen Sheng, CEO of 21Vianet attended the signing ceremony to celebrate the milestone.


This partnership enables customers in China to access Microsoft's Office 365 and Windows Azure services operated by 21Vianet in China. Under today's agreement between the two companies, Microsoft has given 21Vianet the technology license to enable it to operate and provide Office 365 and Windows Azure services in China. Microsoft's Office 365 service operated by 21Vianet will provide customers in China with services including on-line office, e-mail, portal collaboration and unified communications, etc. Windows Azure operated by 21Vianet will provide customers in China with public cloud computing platform services including computing, storage, database, integration and networking services. To ensure normal and reliable operations in China, 21Vianet will operate an Internet data center in Pudong New Area of Shanghai and provide the services based on the cooperation agreement between Microsoft and the Shanghai municipal government and Pudong New Area have signed.
 

For customers in China who prefer to use services operated and delivered directly by Microsoft, Microsoft will provide Office 365 services utilizing Microsoft's data centers in other countries in the Asia Pacific region. Services from these data centers will be subject to relevant the laws of regions in which the data centers are located.


Shanghai municipal government highly commended Microsoft's remarkable efforts in supporting cloud development in China. Since the launch of "Cloud Sea Plan" in August, 2010, Shanghai has achieved the desired effect in promoting cloud computing industrialization through cloud data center construction, key technology research and development, application promotion, business model innovation, etc.. As the cloud computing application model zone, Pudong New Area in Shanghai is in charge of the construction of national and municipal cloud computing demonstration projects such as large cloud platform facing Internet, electronic payment and e-commerce comprehensive service platform based on cloud computing. Pudong has made big strides in developing a cloud computing industry and the landscape of its application and development across hardware and device manufacturing, infrastructure operation, IaaS, PaaS, SaaS and DaaS. Today, the Microsoft Office 365 and Windows Azure successful landing in Pudong, Shanghai will further drive cloud computing demonstration application and it will be good for Shanghai to shape the integrated development pattern of cloud computing software, hardware, applications and services, and to build a complete industrial chain system, as well as to take the lead to become model area of cloud computing application nationwide. Shanghai municipal government has committed to deploy Office 365 and Windows Azure in government offices in Shanghai. Pudong New Area will actively promote Microsoft's public cloud technology applications in related industries and join hands with Microsoft to explore and promote the construction of iPudong.

 
"As an essential part of our 'China Go Big' strategy, Microsoft is committed to the continuous expansion of its investment in China and jointly create more innovative, competitive and talent sustainably developing future. The introduction of Office 365 and Windows Azure to China together with the Shanghai municipal government, Pudong New Area and 21Vianet is a major milestone in fulfilling this commitment," said He Lefu, global senior vice president, chairman and CEO of Microsoft Greater China Region, "Office 365 and Windows Azure will provide enterprises and partners in China with the best public cloud services, superior user experience and a platform for innovation and flexible IT infrastructure options. Today's partnership demonstrates Microsoft's fulfillment of the commitment in increasing its input in China to develop a healthy industry ecosystem with the government, partners and customers, and represents a great stride forward in implementing its Greater China strategy."
 

"Cloud computing is reshaping the structure of economic development and commercial competition. Microsoft is working closely with local government and partners to help drive the rapid growth of the cloud computing ecosystem and related research and development, innovation in the country in an effort to make cloud computing the pillar for future economic growth and industry development, "said Dr. Ya-Qin Zhang, global senior vice president of Microsoft, chairman of Microsoft Asia-Pacific Research and Development Group.


Mr. Chen Sheng, chairman and CEO of 21Vianet stated: "We are proud to partner with a world technology leader such as Microsoft and become the operating partner for Office 365 and Windows Azure services in China. We believe that this enterprise-class cloud platform will bring Chinese enterprises unprecedented efficiency and flexibility. By leveraging Microsoft's strong brand reputation and over 15 years experience of cloud computing operation, as well as 21Vianet's data center expertise, we aim to build a China's top cloud computing platform. "

 
Currently, cloud computing is creating a new wave of global information technology revolution, which brings big opportunity for enterprise development. A recent IDC report predicted that cloud computing will have created 4 million new jobs for China by 2015. A recent report of Forrester Research on cloud computing (Forrester Research: Analysis of Cloud Computing Markets in Asia Pacific Area, Feb. 3, 2012) found that the public cloud market in China will grow from $297 million in 2011 to $3.8 billion in 2020. In addition, the Chinese government has incorporated cloud computing into its "Twelfth Five-Year Plan".