(Yicai Global) March 28 -- AtHub, a major internet infrastructure service  provider in China, will underwrite Alibaba Group Holding's cloud  computing products and services over next six years to help the tech  giant diversify its business development.

AtHub has penned a six-year business cooperation agreement with  Hangzhou-based AliCloud, the Shanghai-based firm said in a statement. 

Athub will underwrite at least CNY435 million (USD64.6 million) worth of  AliCloud products or services over the period. The amount will increase  annually, growing from CNY10 million (USD1.5 million) to CNY144 million  in the final year. 

AliCloud will provide all cloud products and services available on its website  for AtHub and its clients during the period of cooperation. The firm  will also offer technical support to AtHub's new business and assist in  building an operations team that specializes in cloud computing. 

AtHub will need to pay to make up any shortfalls if it fails to hit the  agreed annual sales targets, the statement said. However, this will not  greatly impact the company's bottom line since the targets for the first  two years are relatively small. 

The cooperation will help to strengthen the strategic partnership between  the two firms, increase customer loyalty and achieve diversified  business development, the statement said. The cooperation could be risky  since AtHub's and AliCloud's businesses are quite different in terms of  products, technology and staff.

Editor: William Clegg