Chinese Server Maker Inspur Ranks First in China and Fifth Worldwide in Terms of Server Shipments in Q1 2014

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Jun 09, 2014, 09:00 ET

BEIJING, June 9, 2014 /PRNewswire/ -- A survey of the global server market for the first quarter of 2014 released by market research firm, Gartner, shows that Inspur took the first place of server shipments among server providers in China and the fifth among server manufacturers worldwide by the shipments of 80,929 units in the first quarter. Inspur is the first Chinese domestic provider that becomes the largest server shipper within its home market. Furthermore, it is also the fastest growing firm among the world's top 10 server providers with a 288.7 percent server shipment increase year-on-year.

Domestic makers including Inspur are the main drivers of China's server market and contribute in large measure to the overall growth in global server shipments. In the first quarter, server shipments in China increased 29 percent year-on-year to 427,000 units. China was a key driver in pushing Asia Pacific's server shipment to a growth rate of 18 percent on a yearly basis, making the region a major contributor to the global server market.

Fast growing domestic server makers are changing the competition landscape in China's server market. According to the data from Gartner, the share of the market occupied by domestic makers in the Chinese market has jumped to more than 60 percent, while the share held by American makers, IBM, HP and Dell, dropped from 49 percent a year ago to 38 percent in Q1 2014.Domestic server makers, especially Inspur, have started to take the lead in the Chinese market.

Gartner stated in public that Chinese cloud computing operators, which are building large-scale data centers, buy servers from domestic providers rather than foreign manufacturers, due to the ongoing dispute over information security between China and the U.S. as well as the lower prices of made-in-China servers.

Zhang Haitao, vice president of Inspur Group, said, "Inspur possesses a boasting share of over 40 percent in the fastest-growing and largest Internet industry and it is the largest supplier to Baidu, Alibaba and Qihoo. It is stronger than its foreign rivals in terms of competence in the operation of the complete industry chain as well as compliance with the rules of the Internet industry. Our company can assure itself an excellent margin in tandem with high quality services while controlling costs."

With a doubt, Inspur is the major contributor to the increased share of the China server market garnered by domestic manufacturers. According to Zhang Haitao, in addition to its leadership position in the Internet industry, Inspur has also set foot in several other industries that have traditionally been dominated by American firms, such as finance, telecommunications and power generation, etc. Its increased market share also demonstrated that it has gained the recognition of those high-end users who rarely put domestic server makers on their shopping list.

In early 2014, Inspur kicked off the I2I (IBM to Inspur) plan to grab the domestic market share of IBM which has announced a retreat from the X server market by virtue of its excellent products, channels and services and it aimed to be No. 1 server maker with the largest share of the Chinese market.

The initiative has already achieved initial success. Inspur has established a partnership with a former key distributor of an international firm and 750 gold- and silver-level and CFT channel partners of IBM. By now, Inspur had more than 5,000 partners.

SOURCE Inspur