CCID Consulting: Unix Servers Enter SMBs in China

BEIJING, June 1 /Xinhua-PRNewswire/ -- 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), says Unix servers are entering the small and medium business (SMB) market.

BEIJING, June 1 /Xinhua-PRNewswire/ — 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), says Unix servers are entering the small and medium business (SMB) market.

Unix servers have long built upon their high performance, high reliability and high availability, allowing them to play a leading role in key application fields. However, the high cost and closed platform have kept many users away from Unix servers. Particularly as enterprises have reduced their IT costs in recent years, users now pay more attention to TCO. As a result, Unix servers have seen their market shares continually being taken away by x86. There has been a gradual slowdown in market growth. In such a market environment, many Unix server firms have realized the crux of their product development in the Chinese market. They have rapidly changed their strategies and product positioning and actively coped with market changes.

In 2007, IBM's Systems Department has listed actively developing regional markets, improving channels and getting deep into the SMB market as the foci of its development strategies. It will continue to implement its Blue Sky Program, get deep into cities of 2nd and 3rd tiers, greatly expand regional channel building and strengthen cooperation with its ISV partners. As for product sales models, it has also started to experiment with the massive marketing model for x86, by relying on more regional channel forces to expand the coverage of its Unix products. Through the penetration of its low-end products, the company hopes to drive up its high-end product sales and sell more Unix servers, thus raising its market shares.

The situation is expected to improve in 2007. Various signs give us reason to forecast a better market for Unix servers this year.

Market strategies for Unix servers have been adjusted, and thresholds are continuously being lowered. Unix server firms are now actively adjusting their product development strategies by changing their long-held high-end route and moving their high-end technologies downwards. They hope to take up the market through offering products in a low-high manner. Of course, such strategy adjustment is also a move to respond to changes in market demand. As the large-sized enterprise market is gradually being saturated, the SMB market is developing fast, where new demand is being continually replenished. On the other hand, it is also a measure taken due to competitive pressures and an offensive against x86 servers. Unix server firms are generally adjusting their product price. In particular, there have been unprecedented price drops in 2007. The price of entry-level Unix servers has directly approached that of mid- and high-end x86 servers. This has undoubtedly become very appealing to SMB users. Companies aim to lower the procurement threshold for users through these means and draw some SMS users with high growth potential into the Unix server camp. Then, they will naturally keep the follow-up products, services and upgrading in their hands.

Traditional industries have increased their loyalty to Unix server procurement. In China, Unix server users are relatively concentrated. In particular, the 2 major traditional industries of telecom and financial services are almost entirely controlled by Unix servers. These 2 major industries are used to developing and deploying applications in the Unix environment. In recent years, x86 server technology has matured. Some x86 servers have even rivaled Unix servers. However, security and stability uncertainties surrounding x86 servers make users lack sufficient confidence in migrating their application to an open architecture. Meanwhile, high migration cost also deters users in the Unix camp from easily giving x86 servers a try. In particular, key services building is still the market for Unix servers. Users in traditional industries such as financial services and telecom are now more loyal to Unix server procurement. This will become a main driving force for the Unix server market to grow. In a short period of time, the core role of Unix servers in these traditional industries will be something which x86 servers cannot shake.

Market gravity is starting to shift to markets of 2nd and 3rd tiers, and the massive sales model is being tried at the low end. With the gradual saturation of the tier-1 market, the center of market gravity has started to shift towards markets of 2nd and 3rd tiers. The monolithic, general-agent channel marketing model can no longer meet users' growing demands. This has made several companies adjust their channels. Almost all firms have realized the importance of regional markets. They have rushed to compete for regional channels. There is no doubt that competing for x86 server channels is a shortcut to build up regional channels.

Of course, Unix servers still have competitive advantages after a long time of evolution. The most important factor is that Unix server technology has been continuously innovated. With the continuous downward movement and innovation of multiple machine system designs, central data processing, high reliability designs, micro zoning and virtualization on large-scale hosts, Unix servers have attained unrivalled competitiveness. Meanwhile, an improving competitive environment and firms' active strategy adjustment will help Unix servers to come out of the low end during the year.

About CCID Consulting

CCID Consulting Co., Ltd. (also 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: HK08235), is a direct affiliate of the 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 and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .

For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.com

SOURCE CCID Consulting

Comments are closed.