August 1, 2011
ST Electronics and NEC Corporation (NEC) announced they have signed a Memorandum of Understanding (MOU) to collaborate in Information Communication Technologies (ICT) initiatives. The first initiative under this is a joint venture agreement between ST Electronics’ subsidiary, ST Electronics (Info-Software Systems) Pte. Ltd., and NEC Asia Pacific Pte. Ltd. (NEC APAC), to set up NEC STEE Cloud Services Pte. Ltd. (NEC STEE Cloud Services). The new joint venture will be set up with an initial investment of S$6m. NEC APAC will own a 60% stake in NEC STEE Cloud Services and ST Electronics (Info-Software Systems) the remaining 40% stake. NEC STEE Cloud Services will set up a Cloud Oriented Data Centre (CODC*) to offer Software as a Service (SaaS) to both public and private institutions in Singapore, and subsequently to other ASEAN countries. Existing customers from both companies that choose to move to this new cloud business model will benefit from lower operating costs by outsourcing their requirements to NEC STEE Cloud Services.