Enterprise Tech — Cisco Systems continues to expand its considerable presence in China despite growing friction between U.S. high-tech companies and the government of Chinese President Xi Jinping. On the eve of President Xi’s visit to the U.S., Cisco CEO Chuck Robbins provided more details about a joint venture with Chinese cloud computing and datacenter company Inspur Group. The Chinese server maker is the primary vendor behind the Tianhe-2, the world’s fastest supercomputer.
The Register — Cisco has revealed the first concrete outcome of its new China strategy, inking a deal with the server maker best known for helping build the Tianhe-2 supercomputer. The Borg has long complained that China has been getting in the way of growth. Most recently, the company sent the broom through its executive suites before announcing a US$10 billion plan to revitalise the region.
Digi Times — Average contract prices for server DRAM chips have fallen 15% since the beginning of the third quarter, due to weak demand, according to DRAMeXchange. Shipments of branded enterprise servers have decelerated and even dropped due to a weak global economy and currency rate fluctuations, DRAMeXchange indicated. These factors, together with lackluster demand for all types of DRAM, are driving down server DRAM prices.
Digi Times — In the second quarter of 2015, worldwide server shipments grew 8% on year, while revenues increased 7.2% from the second quarter of 2014, according to Gartner. “The second quarter on-year growth for 2015 slowed compared with the annual growth of the first quarter of the year,” said Jeffrey Hewitt, research vice president at Gartner.
Digi Times — Acer has reportedly obtained orders for servers used in data centers from Taiwan Semiconductor Manufacturing Company (TSMC), which could affect TSMC’s orders to its original supplier IBM, according to sources from the upstream supply chain. Although Lenovo’s share in the server market has quickly picked up from 3% to 8% after acquiring IBM’s x86 server business, some of IBM’s original clients have concerns and have started to look eleswhere for supplies, the sources said.
Tech in Asia — ChinaNetCloud, a China-based that provides cloud server solutions, announced Monday that it has raised a US$9 million series A. The round was led by Juren Capital with participation from Jolly Capital – both Chinese investment firms in the Shanghai area. ChinaNetCloud says the funding will be used to accelerate the company’s growth and further tech development.
China Tech News — China’s Inspur will invest CNY10 billion to distribute cloud computing data centers across the entire country. Inspur said that with solutions for the secure cloud, industrial cloud, and service cloud, Inspur will provide comprehensive cloud services to regional governments, industrial companies, and large enterprises.
Digi Times — Dell’s server shipments and revenues have been growing at a double-digit rate over the past few years, and it now ranks as the second-largest server vendor globally in terms of shipments and revenues, according to Ashley Gorakhpurwalla, vice president and general manager of server solutions unit at Dell.
Digi Times — According to IDC APeJ Server Tracker, the x86 server market in India grew 7.5% in terms of shipments, while in terms of revenues the market witnessed a double-digit percentage on-year growth in the first quarter of 2015. A key highlight of this quarter was the increased uptake of higher priced density and rack optimized servers that led to an increase in the ASP of the servers in the first quarter of 2015 and in-turn resulted in a higher growth percentage in terms of revenues rather than shipments.
Techgoondu — Dell plans to hire about 300 more sales representatives in the Asia-Pacific region as part of efforts to capture a bigger slice of the business IT market. In a statement today, the company said the expanded sales force will be tasked to sell a full suite of IT products and services including servers, software, mobile devices and PCs to business customers. Hiring is currently underway and is expected to continue for several months, it added.
Quanta Computer reportedly is planning to expand its server business software team and will double the existing personnel to 100 by the end of 2015 and double the number again to 200 in 2016 to prepare for entering the enterprise server industry, according to sources from the upstream supply chain. As demand for datacenter establishment from players such as Google, Amazon and Facebook continues rising, these Internet service players have been nurturing white-box server players including Quanta Computer and Wiwynn to reduce costs.
Chinese server manufacturer Inspur launched a campaign on June 9 to attract clients of Hewlett-Packard following the American company’s recent announcement of a plan to restructure its Chinese operations, Chinese business news website Caixin reports. Shenzhen-based Inspur unveiled the campaign in Beijing, in which the company plans to work with 200 independent software vendors (ISVs) and system integrators (Sis) of HP’s Superdome server and migrate 400 applications to its rival product, TianSuo K1.
China’s X86 server market scale reached USD1.6 billion, a year-on-year increase of 23%, according to a report from market research firm Gartner. Inspur, Dell, and Lenovo ranked the top three in this market. Statistics from Gartner show that during the first quarter of 2015, the global server market saw obvious growth with shipments of 2.67 million units, representing a year-on-year increase of 13%. This was reportedly the first time for the global server market to reach double-digit growth since the global economic crisis in 2008.
Unisplendour Corporation Limited, a subsidiary of Tsinghua Holdings, will acquire a 51% stake in H3C from Hewlett-Packard for at about USD2.3 billion. The transaction is expected to close at the end of 2015 and it is still subject to the approvals of Unisplendour’s board of directors and related government authorities. According to the agreement signed by the two parties, the new H3C includes H3C Technologies and HP’s China-based server, storage and technology services businesses, which are valued at about USD4.5 billion (net of cash and debt).
In the first quarter of 2015, worldwide server shipments grew 13% on year, while revenues increased 17.9% from the first quarter of 2014, according to Gartner. “The first quarter of 2015 was a particularly strong start to the year, with the strongest shipment growth since the third quarter of 2010, when the market was recovering from the downturn. It was also the second-largest-volume quarter ever,” said Adrian O’Connell, research director at Gartner.
Global efforts in developing big data and the Internet of Things (IoT) are expected to give a boost to Taiwan’s information services industry, the Market Intelligence Center (MIC) said Saturday. On the back of development in these two sectors, Taiwan’s information service market is estimated to grow to NT$176.3 billion (US$5.78 billion) in 2018 from a projected NT$156.7 billion (US$25.2 billion) for 2015, the MIC said.
NEW YORK: Hewlett-Packard (HP) has announced that it is selling a 51% stake in its China-based server business, creating a joint venture with Tsinghua Holdings that will be a sector leader in China. The US tech giant said it would sell the stake for $2.3 billion, creating a new business called H3C worth $4.5 billion that would be the leader in China in computer servers, storage and technology services. The deal brings together HP with the investment arm of China’s Tsinghua University in a company with some 8,000 employees and $3.1 billion in annual revenue.
Quanta Computer has become VCE’s exclusive supplier of servers used in its VxRack System, a hyper-converged rack-scale system for private cloud applications unveiled by VCE in early May, according to Taiwan-based supply chain makers. However, Quanta declined to comment on the report. VCE is a joint venture set up by EMC and Cisco Systems mainly for integrating EMC-developed storage equipment, Cisco-developed servers and VMware-developed virtualization software to provide private cloud computing solutions for enterprise users.
White-box server vendor Quanta Computer has recently started accelerating its private cloud computing solution development, looking to expand its sales in 2016 and the move is expected to directly affect Hewlett-Packard (HP) and Dell. Currently, direct supply to Internet service players already account for over 80% of Quanta’s server shipments.
NEW DELHI: Google is considering setting up a caching, or mirror, server in India which will enable the Internet major to throw up search results quicker and YouTube videos to load faster in the country which is going through a data explosion, thanks to surging smartphone sales. The US search giant has had initial discussions with fibre manufacturer Sterlite Technologies to co-locate the servers wherever the Indian company’s fibre network is being created, Anand Agarwal, chief executive of the Vedanta Group company, told ET.