Shares of 21Vianet Group Inc VNET are experiencing a rebound in share price Tuesday afternoon following the company's announcement to launch IBM cloud managed services (CMS) in China.
According to the press release, "the launch will enable companies across China to access IBM's IT Infrastructure Library (ITIL)-based capabilities and solutions, managed infrastructure, service-level agreements (SLAs) and management above the hypervisor level.
"The partnership is a key differentiator for 21Vianet, enabling them to provide support beyond the hypervisor level and with a comprehensive range of managed services from IBM—spanning production workloads, high-availability servers, transaction-ready storage and redundancy,” according to the release.”
Following the announcement on Tuesday, shares of 21Vianet quickly surged up 10.5 percent to a high of $20.49, and were last trading at $19.78.
It has been a tough road for the company recently. On August 27, the company reported second quarter fiscal year 2014 earnings, missing street EPS estimates by $0.15 per share and missing revenue estimates by 83 percent. After the company reported the downbeat earnings, shares dropped roughly 100 percent in the following sessions, eventually catching a bid around the $14 level.
Shares of 21Vianet seem to be holding a newly-found support level around $18, where the stock experienced sideways trading action throughout late 2013.
21Vianet Group is scheduled to release third quarter 2014 earnings on November 25.
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