China-based server vendor Inspur Technologies has triggered price-cut competition for servers used in cloud data centers in Europe, looking to expand in Europe's cloud computing server market. Inspur's action has alarmed server vendors worldwide and vendors have been checking with upstream suppliers to determine the China-based vendor's future plans.
Inspur's revenues grew over 38% and net profits over 30% on year in 2015 and several market watchers are optimistic about the company's performance in 2016 and expect sales to grow another 40%. Inspur currently has an over 60% share in China's network service server market.
Inspur used to focus mainly in China, but growing competition from other China-based server vendors such as Sugon, Lenovo and Huawei, have prompted the vendor to expand its business to overseas markets. Inspur established an office in North America in 2015 and achieved strong sales in the year.
Seeing Inspur competing with price cuts, Hewlett-Packard (HP) and Dell are both closely monitoring the China-based vendor's moves, while some vendors are unsatisfied with their shared upstream suppliers, accusing them for providing better quotes to Inspur.
In addition to Inspur, Lenovo and Huawei have also been pushing into datacenter server markets outside of China. Lenovo has established a business group specifically handling datacenter server development, while Huawei is planning to invest US$1 billion each year to develop servers and software.
Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Wednesday 14 September 2016]
Source: Digitimes
