Internet Initiative Japan and China Telecom will jointly provide cloud computing services as part of a new that will start in the Chinese summer of this year.

The companies said they deliver Infrastrusture-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) using IIJ's experience with its IIJ GIO cloud platform and China Telecom's network-the largest in China with 170m local subscribers.

China Telecom also operates a number of large data centers across the country.

IIJ using China Telecom infrastructure will build and operate the cloud services.

Both companies said demand for cloud computing in China is growing - the Chinese Government in particular is promoting cloud for business growth and setting up cloud centers across the country.

IIJ said its operations in China will also help Japanese companies tap into the lucrative Chinese market.