Chinese Server Market Development and Major Brand Analysis

Transcription

1 Industry Intelligence Program Computing Chinese Server Market Development and Major Brand Analysis Abstract Taking advantage of the rise of cloud and mobile computing, the server industry has been booming in the past few years. And the server industry, used to be led by US and European brands, has shifted focus to emerging markets rather than on almost saturated mature markets. Due to the opening of China and the government's preferential policies, Chinese server brands are growing at substantial rates especially four leading brands, namely Lenovo, Huawei, Inspur and Sugon. This report profiles the development of the Chinese server industry and gets a glimpse of how these four Chinese homegrown brands deploy their products and services. by Lucas Lee Document Code: Publication Date: January 2014 Check out MIC on the Internet!

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3 Chinese Server Market Development and Major Brand Analysis i Table of Contents Page 1. Growth Driving Factors in the Chinese Server Market Rise of the Cloud Computing Market Online Shopping Frenzy Development of Next-generation Communications Technology Cloud Computing Policy Development in China Cloud Policy Management Importance of Cloud-based Policy Influence of Policy on Server Product Demand Development of the Chinese Server Market Market Volume Chinese Server Branded Vendors' Shipment Share Chinese Server Product and Service Development Trends Strategic Development of Major Chinese Server Brands Development Status Huawei Introduction Products and Services Customer Relations/Market Positioning Lenovo Introduction Market Intelligence & Consulting Institute January 2014

4 ii Industry Intelligence Program - Computing Products and Services Customer Relations/Market Positioning Inspur Introduction Products and Services Sugon Introduction Products and Services Customer Relations/Market Positioning Development Strategies of Huawei, Lenovo, Inspur and Sugon.. 7 MIC Perspectives... 8 Appendix... 9 Glossary of Terms... 9 List of Companies January Market Intelligence & Consulting Institute

5 Chinese Server Market Development and Major Brand Analysis iii List of Figures Page Chinese Server Shipment Volume, Worldwide Server Shipment Volume by Vendor, 2Q Market Intelligence & Consulting Institute January 2014

6 iv Industry Intelligence Program - Computing List of Tables Page Chinese Cloud-based Policy Announcements, Development Strategies of Huawei, Lenovo, Inspur and Sugon... 7 January Market Intelligence & Consulting Institute

7 Chinese Server Market Development and Major Brand Analysis 1 1. Growth Driving Factors in the Chinese Server Market 1.1 Rise of the Cloud Computing Market Cloud computing development has been thriving in the past few years, driving demands for cloud-based hardware, servers, storage systems, and connected equipment. Server shipment growth therefore remains buoyant. Mature markets like Europe and the United States are still growing rapidly but eyes are now also on the Asian emerging markets, led by China. Due to early developments, the construction of cloud-based infrastructures in mature European and US markets has been near completion. Even so, the cloud-based investment plans in mature markets continue on. For instance, Google announced in November 2013 that it would earmark an extra US$600 million for expanding the scale of its data center in Finland. Amid the continuous hardware investment, vendors have been shifting focus from hardware to software and services in pursuit of seamless integration between software and hardware. In emerging markets, where cloud computing development is still at the infancy, the focus has been leaning toward infrastructure deployment. 1.2 Online Shopping Frenzy The growing demand from Chinese online service providers are also one of key factors driving server growth. Corporate revenues of three online service providers, namely Alibaba.com, Baidu.com, and Tencent (qq.com), were all seen upward growth in For instance, the total revenue of Alibaba.com reached US$1.74 billion in the second quarter of 2013, up 61% year-on-year. Those three major online service providers have been actively expanding server rooms and purchasing server systems in response to growing demands caused by the increased subscriber base and network traffic volume. On Chinese Double-Eleven single day, for instance, had brought about sales exceeded 35 billion RMB (US$; US$1 = 6.06 RMB), breaking the records. On that day, the transaction amount on the Alibaba.com broke 100 million RMB (US$16.5 million) within one minute and 2014 Market Intelligence & Consulting Institute January 2014

8 2 Industry Intelligence Program - Computing 5 billion RMB (US$820 million) within 38 minutes. Within 24 hours, the number of transactions proceeded on Double-Eleven single day was approximately 171 million in 2013, representing 790,000 transactions processed per minute. In order to cope with the surging number of online users accessing its website, Alibaba had prearranged over 60,000 servers prior to the Double-Eleven day to share the load on the server-end. This has proven that the sale growth of Chinese online service providers is bringing demands for server systems. 1.3 Development of Next-generation Communications Technology 2. Cloud Computing Policy Development in China 2.1 Cloud Policy Management January Market Intelligence & Consulting Institute

9 Chinese Server Market Development and Major Brand Analysis 3 Table 1 Chinese Cloud-based Policy Announcements, Institute Month Releasing Name of Policy Released Description Policy State Council MIIT, National Development and Reform Commission Ministry of Science and Technology MIIT MIIT MIIT State Council Ministry of Science and Technology Source: China's Cloud Computing White Paper, compiled by MIC, January Importance of Cloud-based Policy 2.2 Influence of Policy on Server Product Demand 3. Development of the Chinese Server Market 3.1 Market Volume Figure 1 Chinese Server Shipment Volume, Source: MIC, January Chinese Server Branded Vendors' Shipment Share 2014 Market Intelligence & Consulting Institute January 2014

10 4 Industry Intelligence Program - Computing Figure 2 Worldwide Server Shipment Volume by Vendor, 2Q 2013 Source: MIC, January Chinese Server Product and Service Development Trends January Market Intelligence & Consulting Institute

11 Chinese Server Market Development and Major Brand Analysis 5 4. Strategic Development of Major Chinese Server Brands 4.1 Development Status Huawei Introduction Products and Services Customer Relations/Market Positioning Lenovo Introduction 2014 Market Intelligence & Consulting Institute January 2014

12 6 Industry Intelligence Program - Computing Products and Services Customer Relations/Market Positioning January Market Intelligence & Consulting Institute

13 Chinese Server Market Development and Major Brand Analysis Inspur Introduction Products and Services Customer Relations/Market Positioning Sugon Introduction Products and Services Customer Relations/Market Positioning 4.2 Development Strategies of Huawei, Lenovo, Inspur and Sugon Development Strategies of Huawei, Lenovo, Inspur and Sugon Target Future Other Company 4P Strategy Customers Development Expertise Table 3 Huawei Lenovo Inspur Sugon Source: MIC, January Market Intelligence & Consulting Institute January 2014

14 8 Industry Intelligence Program - Computing MIC Perspectives The Shift from Expensive, Bulky Servers to Low Cost x86 Servers The Impact of China's Server Self-sufficiency Policy January Market Intelligence & Consulting Institute

15 Chinese Server Market Development and Major Brand Analysis 9 Appendix Glossary of Terms B2B CPU GDP HPC IaaS IoT LAN OS POS RISC UPS Business to Business Central Processing Unit Gross Domestic Product High Performance Computer Infrastructure as a Service Internet of Thing Local Area Network Operating System Point of Sales Reduced Instruction Set Computing Uninterrupted Power Supply 2014 Market Intelligence & Consulting Institute January 2014

16 10 Industry Intelligence Program - Computing List of Companies Alibaba Baidu China Mobile China Telecom China Unicom Cisco Dell EMC Fujitsu Google HP Huawei IBM Inspur Lenovo RigidTech SGI Stoneware Sugon Tencent VMware January Market Intelligence & Consulting Institute

17 For more information Service Hotline Fax Address Web Address Copyright 2014 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.