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It was announced yesterday that Intel Corp had agreed to invest US$40 million in Neusoft Group Ltd, a leading Chinese software and solutions provider, to help it strengthen its presence in the health care and finance development of the software market.

 

The investment is the largest yet by the US$200 million Intel Capital China Technology Fund launched by the company last year to invest in Chinese technology companies developing innovative hardware, software and services, according to Arvind Sodhani, president of Intel Capital, the company's venture investment arm.

 

The two companies also signed a business cooperation agreement to further their strategic ties in software and hardware integration, education and training. The tie-up allows Neusoft to build a Solution Performance Optimization Competency Center based on Intel's architecture and platforms to enhance their research and cost-cutting capabilities.

 

Liu Jiren, chairman and CEO of Neusoft Group said yesterday, "The cooperation with Intel will help Neusoft enhance its self innovation capability and enable Neusoft to provide better products and solutions in line with international norms for customers as well as driving the development of China's software industry."

 

He told China Daily the agreement paved the way for further cooperation especially in the digital health care market.

 

Neusoft, founded in 1991, is one of the China's largest suppliers of software solutions for the health care market and reportedly has around 3,000 hospital clients. In total Neusoft had more than 8,000 corporate customers in China, according to company president Wang Yongfeng.

 

Neusoft is a specialized vendor of solutions, digital products and services with expertise in software technologies. A Neusoft-featured business model has been established with the integration of software and industry application, combination of software and digitalized products, cultivation of talents in software and consultation services.

 

"Digital health is a new market for Neusoft and Intel and I believe our efforts will help improve health care and make breakthroughs in the field," said Liu.

 

Intel, the chip maker, established the Digital Health Platforms Group last year to apply its technologies to the global health care business.

 

Renee James, vice president of Intel Corp and general manager of Intel's Software and Solutions Group said yesterday, "The cooperation with Neusoft will benefit both Intel and Neusoft in digital healthcare. It will help Neusoft shorten its research and development cycle and improve its global marketing backed by Intel's core technology and global marketing capabilities."

 

She said Intel would assist Neusoft, one of the China's largest software exporters, distribute its products across the world through Intel's sound global sales networks.

 

Market analysts said Neusoft's union with Intel Corp highlighted its tactic of expanding in the domestic and global markets through forging partnerships with multinational IT companies.

 

In May Neusoft agreed to sell around 3 percent of its stake to SAP China, a subsidiary of Germany-based software and solutions provider SAP AG, for 10 million euros (US$12.8 million). SAP China also signed a separate agreement with Neusoft under which Neusoft will expand its training offerings for SAP software in China.

 

Neusoft will develop and distribute micro-vertical solutions built upon SAP Best Practices and designed for small and mid-sized enterprises in China's manufacturing industries.

 

(China Daily September 27, 2006)