IBM Competitors Limit Up Again on Mainland; Inspur Up 15% in HK After It Poaches IBM Talent

Yesterday there was this headline: IBM Challenger Inspur Woos China Customers Amid Dispute
Chinese server maker Inspur Group Ltd. started a campaign to lure customers from International Business Machines Corp. as the government studies if domestic banks’ reliance on IBM technology threatens national security.

Today, there are reports the firm is also poaching IBM's employees, another story puts the number at 80 so far.

浪潮确认“挖角”IBM 多名员工跳槽至浪潮 (Inspur confirms it is raiding IBM; Many Employees Have Joined Inspur)
Yesterday, news that a comprehensive plan to replace the wave of IBM server business in China, there are more than 80 IBM employees switched to wave. Inspur Group confirmed to the Beijing News reporter "This is true." As of yesterday, the wave of the Group's wave of software [ 6.13% funding research report ] has daily limit for three consecutive days.

IBM was "poaching"

In assessing whether the Chinese government research and reliance on domestic commercial banks IBM Corporation (IBM) server is a threat to national security, the Chinese server manufacturers launched the wave of the Group of IBM customers, "erosion" action.

IPG to Beijing News reporter sent an information display, May 27, the tide started nationwide innovative data centers nationwide tour to show the wave of high-end servers, generic servers, storage systems, cloud computing, big data, high-performance computing and mainframe 18 of the models the safety of the six modules, 12 solutions and applications demonstrate full debut.

At the same time, the tide station in Jinan, first published a study entitled "I2I program" (IBM to Inspur) plan aims to take full control of IBM X business.

Wave that began last year, the wave of the financial replace part of IBM servers and related facilities and other industries. Including China Construction Bank [ -0.25% funding research report ] , a number of state-owned postal savings banks, savings banks have been using since last year pilot wave produced domestically server.

Left Bai Chen, vice president, said the wave, the wave of the server and minicomputer products, has had the ability to fully take over IBM products. In terms of talent pool, the tide had already recruited a large number of professionals from IBM and other foreign server vendors. Wave through products, channels, services, prices of full-force, a comprehensive alternative to IBM's server business in China to accelerate China's server market share in the first goal.

At the same time though there is news that this year a large number of IBM employee turnover. On the news, IBM China, PR Director Shen Xiao Yi said, IBM does not comment on this temporarily.

IBM results have been eight consecutive quarters of decline, last year IBM decline in performance was attributed to weakness in the Chinese market. Foreign media will be Microsoft, IBM, Cisco China were attributed to declining performance by the "prism incident" affected.

Wave of hundreds of millions each year by the Government-funded

Left Bai Chen said that from the beginning of last year, the government increasing importance of information security, the extent of the wave beyond expectations. According to reports, beginning in 2009, the wave of several hundred million dollars every year to get financial support from the government, mainly through 863 projects, nuclear high base, the results of the NDRC's transformation and so on.

In addition, the government has also set up a wave of high-performance server storage group and facilities, the ministry also has a wave Laboratory, to undertake country missions. In addition, there are many preferential policies. "For example, the wave of foreign companies setting is not compatible with obstacles, the Ministry will allocate 200 million yuan wave R & D funding, requiring the wave of 2015 to reach the same level as international." Left Bai Chen said.

March 2013, China started the wave of domestic manufacturing in the Postal Savings Bank pilot server, the same year in May, the country's three data centers Construction Bank data center in Wuhan, the tide has made ​​large-scale applications. Subsequently, the wave-related products in the China Banking Regulatory Commission , China's central bank, part of the policy banks, a number of provinces and the City firm to obtain applications. Analysts said the Chinese government to strengthen information security initiatives are gradually implementing corporate action.

However, industry insiders believe that the wave group wanted to overthrow IBM's leading position in China is not easy. In 2012, total revenue of 401 billion wave yuan , only 6.2% IBM year income.

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