Today at a press conference in Dongying, China, the local government announced a strategic initiative with IBM (NYSE: IBM) to use cloud computing to jumpstart new economic development in the region. Traditionally known for manufacturing and oil cultivation, Dongying will use IBM cloud technology to build a common platform to promote e-government, and support the city's transition from an industrial to services-based economy.

Dongying is located in the central area of the Yellow River Delta and boasts rich oil and ecological resources and is home to China's second largest oil field. As such, Dongying's petroleum industry supply chain is expanding rapidly. By building The Yellow River Delta Cloud Computing Center Dongying aims to help its petroleum industry develop more innovative application services, while also becoming a sustainable eco-city and maximizing public benefit.

IBM is helping the Dongying government build a cloud that will provide software development and test resources for software startup companies via the web through a self-service user interface. In addition, this cloud will be expanded to also be an e-government services platform for the Dongying economic development zone as well as a Research and Development platform for eco-friendly oil cultivation.

"IBM is honored to be cooperating with the Dongying government on the Yellow River Delta Cloud Computing Center. With advanced information technologies, IBM is helping many Chinese regions build 'Smarter Cities'," said Willy Chiu, Vice President of IBM Cloud Labs. "We believe that the IBM CloudBurst based Smart City solution for the Dongying government will lay a solid foundation for sustainable economic development, transformation towards a service-oriented government and creation of an eco-friendly environment."

At the press conference, Mr. Li Jinkun, Vice Mayor of Dongying Municipal Government, said, "The national policy to develop the Yellow River Delta marks new opportunities for Dongying, and meanwhile raises newer and higher requirements on informationalization. In cooperation with IBM, The Yellow River Delta Cloud Computing Center is Dongying's positive attempt to transform towards a service-oriented government and promote harmonious development between economy and ecology. The 'Smarter City' initiative proposed by IBM is the blueprint of a new city that we are trying to develop and keep improving. Dongying expects to become a real "City of Digital Innovation" with the help of IBM Cloud Computing."

The Dongying government will adopt IBM CloudBurst to build an integrated cloud platform for The Yellow River Delta Cloud Computing Center.