Lenovo to Sell VMware in China

Lenovo's deal will extend VMware's reach in China, where Chinese Lenovo is the largest computer maker.

"Through our relationship with Lenovo and its world-class brand, we are making VMware virtualization more broadly available to the Chinese market," said Diane Greene, president and chief executive officer of VMware.

The deal will allow Chinese companies to buy Lenovo servers with VMware infrastructure 3 preinstalled.

Economic growth in China has increasingly attracted many U.S. tech companies allowing them to tap into a potentially huge customer base in a nation which is currently considered to be having more Internet users than the United States.

Many companies including Cisco and Intel are entering the Chinese market by increasing their investment in the nation.

Cisco Systems, earlier this month launched public private collaborative programs on Internet and environmental research and development, leadership training, best practice sharing and business development investments, an initiative led by Jim Sherrif, chairman Cisco China.

Intel also announced a $500 million investment into wireless broadband, media, telecommunications and clean tech.