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          IBM taps Internet cafes operator
          ( 2003-11-26 09:28) (China Daily)

          US information technology giant International Business Machine (IBM) yesterday signed a memorandum of understanding with domestic Internet cafe operator Asia United Telecom and Network Co Ltd to tap the potential for Internet cafes in China.

          The latter will build a 2,000-square-metre Internet cafe in Wangfujing of downtown Beijing with all IBM equipment and software, including 700 computers and several servers as well as IBM Tivoli software to manage the system.

          IBM will provide financial backing for the effort, which the Chinese firm intends to pay back using revenues.

          "With China's June decision to restructure Internet cafes as chain stores, it has raised requirements on stable performance, management and service of computers and networks, where IBM is very strong, so we are quite confident in this area," said David Cheng, director of global small and medium business in China.

          The country gave licences to 10 Internet cafe operators in June allowing them to run nationwide chains, including Asia United.

          The move was intended to raise the threshold to operators and to stop them from accepting applications from small operators, which were believed to open the gate to pornographic and violent sites to students and others.

          IBM said there should be more orders coming in from Asia United, if their co-operation succeeds this time.

           
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