Kingsoft Cloud and CEC D-Commerce Tech Form Strategic Partnership to Drive Healthcare Cloud Development in China
22 September 2020 - 7:01AM
Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”)
(NASDAQ: KC), a leading independent cloud service provider in
China, today announced that the Company has recently entered into a
multi-year strategic framework agreement (the “Agreement”) with CEC
D-Commerce Technology (Shanghai) Co., Ltd. (“CEC D-Commerce Tech”),
to invest in and expand healthcare cloud services, re-engineering
the data services layer, and improving the analytical capabilities
of healthcare organizations across China.
Pursuant to the Agreement, both companies will
jointly develop cloud-based healthcare solutions, and provide
healthcare organizations with powerful data analysis and
application tools which can significantly reduce on-premise IT
construction, operation and maintenance costs for hospitals and
healthcare agencies across China. Both parties will execute cloud
projects at the national, provincial and municipal levels. Flagship
projects will first be implemented within a number of regions, and
then be gradually expanded to provinces and cities across the
country.
CEC D-Commerce Tech will capitalize on its
extensive connections with the healthcare supply chain to generate
qualified sales leads and commit resources to facilitate healthcare
projects, while Kingsoft Cloud will leverage its existing public
cloud technologies to further research and develop proprietary
technology in healthcare solutions, advise best-fit cloud adoption
patterns, achieve enhanced technical interoperability, and
successfully execute and deliver projects.
Kingsoft Cloud’s strategic expansion into the
healthcare industry is primarily due to the following reasons:
1) Demand for healthcare cloud-native services is
still in its infancy and presents an enormous growth opportunity in
China. An IDC report asserts that IT spending on cloud services for
China’s healthcare industry is expected to reach RMB17 billion by
2023.
2) National policies are supportive of healthcare
digitalization, providing guidance on timetable, technology
standards, data requirements and accommodative budget
allocations.
3) The rapid onset and impact of the COVID-19
pandemic has urged national and local governments to digitalize the
healthcare industry. As a result, there has been sustainable demand
for the establishment of standardized data centers, unified
information standards and data services for the healthcare industry
across China.
4) Healthcare use cases for big data is
multifaceted, spanning personal health, medical services, disease
control and health preservation. The integration of various data
sources and the growing need for data analysis create recurring
demand for healthcare cloud services.
This new partnership with CEC D-Commerce Tech will
enable Kingsoft Cloud to establish a solid foothold in a market
with significant growth prospects.
Kingsoft Cloud’s robust cloud infrastructure,
end-to-end healthcare solutions and unparalleled service
capabilities will support healthcare data centers, along with
healthcare information, medical insurance and medical community
platforms. As an independent cloud service provider with no
exposure to healthcare business, Kingsoft Cloud will provide
secure, compliant and resilient data services, break down data
silos and enable on-demand access to the data. By leveraging its
expertise in enterprise service delivery, Kingsoft Cloud is
best-positioned to manage the complexities of running enterprise
programs, which is critical for operating in the highly regulated
and standardized healthcare industry. CEC D-Commerce Tech is one of
the leading companies advocating for favorable national policy to
be deployed across China. It has deep access to a pool of project
resources for the healthcare sector. This cooperation will expand
Kingsoft Cloud’s integration into the operational infrastructure of
the healthcare industry.
In order to fully capture this long-term growth
opportunity, Kingsoft Cloud plans to devote additional resources,
hire talent with specialized healthcare cloud computing experience
and further invest in upgrading the Company’s technology
capabilities for the healthcare industry.
About Kingsoft Cloud Holdings
LimitedKingsoft Cloud Holdings Limited (NASDAQ: KC) is a
leading independent cloud service provider in China. Kingsoft Cloud
has built a comprehensive and reliable cloud platform consisting of
extensive cloud infrastructure, cutting-edge cloud products and
well-architected industry-specific solutions across public cloud,
enterprise cloud and AIoT cloud services.
For more information, please visit:
http://ir.ksyun.com.
About CEC
D-Commerce TechCEC D-Commerce Technology
(Shanghai) Co, Ltd. (“CEC D-Commerce Tech”) is a subsidiary of
China Electronics Investment Holdings Limited. It is one of the
leading companies in the healthcare industry that promotes
migration of on-premise IT to the Cloud.
Safe Harbor StatementThis
announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, the
Business Outlook and quotations from management in this
announcement, as well as Kingsoft Cloud’s strategic and operational
plans, contain forward-looking statements. Kingsoft Cloud may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (“SEC”), in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to fourth parties. Statements that are not
historical facts, including but not limited to statements about
Kingsoft Cloud’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: Kingsoft
Cloud’s goals and strategies; Kingsoft Cloud’s future business
development, results of operations and financial condition; the
relevant government policies and regulations relating to Kingsoft
Cloud’s business and industry; the expected growth of the cloud
service market in China; the expectation regarding the rate at
which to gain customers, especially Premium Customers; Kingsoft
Cloud’s ability to monetize the customer base; fluctuations in
general economic and business conditions in China; the impact of
the COVID-19 to Kingsoft Cloud’s business operations and the
economy in China and elsewhere generally; China’s political or
social conditions and assumptions underlying or related to any of
the foregoing. Further information regarding these and other risks
is included in Kingsoft Cloud’s filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and Kingsoft Cloud does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please
contact:Kingsoft Cloud Holdings LimitedNicole ShanTel: +86
(10) 6292-7777 Ext. 6300Email: ksc-ir@kingsoft.com
ChristensenMs. Linda BergkampPhone:
+1-480-614-3004E-mail: lbergkamp@christensenir.com
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