Both firms will concentrate on emerging small and medium enterprises in healthcare and other fields.
Tencent Holdings is one of the major providers of internet services in mainland China, and its Cloud division sells to enterprises and developers a number of offerings.
Taosang Tong, a senior executive VP of IBM said: “Tencent has a stable and reliable cloud computing platform, while IBM has abundant industry expertise aimed at the enterprise.”
Nancy Thomas, a managing partner at IBM China said the two companies will bring scale and cost benefits of cloud computing to Chinese enterprises. “The industry dimension makes this especially appealing for businesses,” she said.
Financial considerations were not disclosed.