2Q08 External Storage Systems Growth In China
China's external storage
systems shipments in 2Q 2008 jumped 43.0% YOY. Despite global economic
sluggishness, China's enterprise data demands, applications convergence,
virtualization and simplified IT management drove storage systems growth.
China's small and medium enterprise (SME) sector continues to help drive
growth as well.
Most sales still come from China's more
developed regions, although the West region has the potential.
In 2Q08, demand for storage systems came
mainly from China's more developed North, East and South regions. Recovery
from the Sichuan earthquake will stimulate some storage demand. Vendors are
focusing on less developed regions, as EMC has set up offices in
China's western regions.
Competitive vendors in China.
IBM leads in shipment share for 2Q08, and
delivers innovative and green (energy efficient) products. IBM and
strong advantages in large-scale storage targeted to enterprises and
EMC continues to execute its strategy
targeting China's fast growing SME sector, which also has a spillover effect
into other sectors, and the company has the largest share in network
storage. EMC promoted its bi-directional replication products, and is the
fastest growing storage vendor in China.
As an iSCSI SAN leading vendor,
also does well in the quarter.
Inspur launches new product lines which
targets audio and video to sustain its competitiveness. Price drops in
products drive vendors to a more integrated solution-oriented approach.
The strong drivers for demand.
Vendors are promoting green and innovative
products, and China's vertical industries are listening. Financial
services—including banking, insurance, and securities—and telecom, which are
more resource-rich, are driving demand with great interest in data security.
Multinational banks are increasing their investments in China, and are
driving demand for storage as well. 3G will also enable more networked
The Beijing Olympics has spurred demand in
China's North region, in municipal traffic monitoring, control, and
recording, which in turn drive storage demand. The Olympics has also spurred
demand in China's media industry.
Vendors are focusing more on service in
Customers are increasingly purchasing
product through channels, which are able to provide integrated solutions and
services in addition to product. Systems integrators and value-added
channels in China are playing more important roles, providing not only
sales, but also professional services and technical support. This is a
natural outcome as products are becoming more sophisticated, and require
such services. Shipments through distributors and channels increased
slightly in 2Q08.
Acquisition is the keyword for vendors
to better realize their competitive advantages.
In 2Q08, IBM completed its acquisition of
FilesX, a storage software company specializing in continuous data
protection and nearly instant data and application recovery software.
HP bolsters its data center solutions and
its acquisition, near the end of 2007, of EYP Mission Critical Facilities, a
consulting company specializing in strategic technology planning, design and
operations support for large-scale data centers.
In 2Q08, EMC acquired
Iomega to strengthen
its position in consumer and SME sectors. To strengthen EMCs consulting and
services, the company also announced its intention to acquire
technology consulting firm specializing in the design, development and
delivery of custom applications and digital experiences.
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Unless otherwise specified,
all information provided is sourced from CCID Consulting.