Fri, May 30, 2014 - Page 15 News List

China’s Inspur pursues IBM’s server clients

Bloomberg

Chinese server maker Inspur Group Ltd (浪潮集團) started a campaign to lure clients from IBM Corp as China studies whether domestic banks’ reliance on IBM technology threatens national security.

Jinan-based Inspur this week unveiled its “IBM to Inspur” campaign, said an Inspur marketing employee who asked not to be named, citing company policy.

The move could help Inspur capitalize on a dispute with the US after prosecutors there charged five Chinese military officers in the alleged hacking of US companies.

Inspur’s reported 36.7 billion yuan (US$5.9 billion) of revenue in 2011 equaled 5.5 percent of IBM’s sales.

“There aren’t that many alternatives for high-end banking servers, so it’s quite hard to find replacements,” Taiwan-based UBS analyst Arthur Hsieh (謝宗文) said by telephone.

The People’s Bank of China, China’s Ministry of Finance and other Chinese agencies are reviewing domestic banks’ use of IBM servers and expanding a trial program to replace them with homegrown ones, four people familiar with the matter said on Tuesday.

China Postal Savings Bank Co (中國郵政儲蓄銀行) is using Inspur servers in the trial, which began in March last year, the people said.

Inspur International Ltd shares rose 9.9 percent to HK$1.67 in Hong Kong trading yesterday, compared with a 0.6 percent increase in the benchmark Hang Seng Index. A unit trading in Shenzhen climbed by the 10 percent daily limit.

China is issuing rules because Internet and information safety are important parts of its security, Foreign Ministry spokesman Qin Gang (秦剛) said on Wednesday in Beijing.

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