BEIJING, Dec. 3 /PRNewswire-Asia/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released a report on China's server market in 2008Q3.
CCID Consulting's data shows that the size of China's X86 server market in 2008Q3 reached 182,000 sets, the sales revenue reached 3.23 billion Yuan. The market has reduced significantly, affected by factors including the global financial crisis, Sichuan earthquakes, the suspension of government centralized purchasing projects, green, energy-saving and virtualization technical development, More industry users are choosing high-end servers, which result in the decrease in sales volume.
Table 1: Size and Growth of China's X86 Server Market in 2008Q3
2007Q3 2008Q3 Year-on-Year
Growth Rate
Sales Sales Sales Sales
Products Volume Revenue Volume Revenue Sales Sales
(10,000 (100 Million (10,000 (100 Million Volume Revenue
Sets) Yuan) Sets) Yuan)
X86 Servers 15.80 28.90 18.20 32.30 15.2% 11.8%
Source: CCID Consulting, Oct. 2008
Green and Energy-Saving Server Becomes Market's New Highlight
Building of high efficient and green data centers is becoming an industrial focus. Green IT is the only way to IT industrial sustainable development. Energy-saving, optimization, high efficiency and security are server products' major development direction, which have become market's highlight. Manufacturers launched energy-saving products and solutions in 2008Q3.
Foreign Manufacturers Continue to Lead the Market
As for market pattern, three foreign manufacturers remain in leading positions; the sales revenue of HP accounted for 27.9% of the total market; the sales revenue of IBM accounted for 25.4%; the sales revenue of DELL accounted for 18.4%. The growth rate of HP and IBM is higher than the market's average level. HP had the largest market share of the market. DELL made important advancements in 2008Q3, it launched commercial products' cooperative partner plan in April so as to improve its coverage in China, which is based on direct mode. DELL's sales volume in 2008Q3 was up 18.2% year-on-year. Besides, based on Olympic marketing, Lenovo improved its international brand image resulting in an increase in sales volume at 17.3% year-on-year.
SME Market Still Keeps Rapid Development
As for vertical market segments, the SME market is developing most rapidly. SME market in 2008Q3 was up 18.6% year-on-year. Internet value-added industry and logistics industry enjoyed powerful growth, led by SMEs. As for product supply, server suppliers provide appropriate solutions, high cost performance; they also pay more attention to products' scalability and manageability so as to satisfy SMEs' development requirements in the future.
Financial Crisis Has Little Influence on Telecom Industry
As for parallel market development, global financial crisis has little influence on telecom industry, which maintains its rapid development. China Mobile's TD and GSM, China Telecom's CDMA, China Unicom's GSM investments are growing, and Internet market's rapid development drives China's telecom value-added services' prosperous development, which becomes new impetus of server market's development, the sales volume of servers in telecom industry in 2008Q3 is up 31.6% year-on-year; the sales revenue is up 23.5% year-on-year.
Competition Intensified in Regional Markets
As for the channel market, dealers' channel shipment in 2008Q3 grew rapidly; the growth rate was 27.3%. Many manufacturers strengthened their coverage ability in regional markets, especially tier 3-4 cities; they also strengthened their support to terminal channels. Manufacturers' market activities in 2008Q3 are around products' national show delegation so as to make users know manufacturers' products and technical innovation.
In 2008Q4, CCID Consulting forecasts that financial crisis will affect
China's finance industry and export-oriented manufacturing enterprises, which results in more careful investment planning, and that IT expenditure for financial institutes is likely to reduce. Financial crisis has little influence on telecom industry, so China's telecom industry is likely to maintain an upward momentum. As for brand competition, due to the global financial crisis, foreign brand manufacturers will transfer their focus to new emerging market and China's market, and transfer from financial industry to other industries, which bring great pressure to China's brand manufacturers. CCID Consulting forecasts that in 2008Q4, the growth rate of enterprises' IT investment will slow down, the investment will become more cautious. Compared with 2007, the size of server market will shrink. It is forecasted that the sales volume of China's server market in 2008Q4 will reach 158,000 sets, up 15.8% year-on-year, and up 8.8% over 2008Q3; the sales revenue of China's server market in 2008Q4 will reach 3.49 billion Yuan, up 11.2% year-on-year, and up 8.0% over 2008Q3.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
