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CCID Consulting Forecasts 16.1% Growth in Server Sales in China in 2008

BEIJING, Jan. 25 /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), recently released its forecast of a 16.1% growth in server sales in China in 2008.

BEIJING, Jan. 25 /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), recently released its forecast of a 16.1% growth in server sales in China in 2008.

CCID Consulting's data show that in the first 3 quarters of 2007, China's x86 server market slowed down. Sales volume reached 423,000 sets, generating sales revenue of 7.95 billion Yuan, up by 16.1% and 12.6%, respectively. The main driving forces for market growth came from the fast-growing telecom and value-added telecom services, the accelerating IT applications in the transportation sector, the warm-up of the SMB market and emerging new applications such as online banking and securities trading, new socialist countryside building and city emergency system building. In 2007, competition in Tier-3 and 4 markets intensified. Foreign firms' inroads into the low-end market and implementation of regional channel strategies meant that the price and channel advantages upon which domestic firms relied no longer existed. Multi-core and virtualization technologies became new growth points and were the directions and opportunities which firms needed to grasp. Operational efficiency and reliability will be the major challenges that firms need to face.

Fig. 1: Changes in Size of China's x86 Server Market in 2007 http://www.ccidconsulting.com/upload/12655.jpg Source: CCID Consulting, November 2007

Looking forward to the future, CCID Consulting forecasts that:

Product demand will migrate towards the middle- and high-end. In 2008, the server market will gradually slow down. Sales volume and sales revenue are expected to grow by 16.1% and 11.8%, respectively. And, the product demand will migrate towards the middle- and high-end.

Channels will continue to expand towards Tier-3 and 4 cities. As future opportunities in the server market turn to Tier-3 and 4 cities, the directions for channel building will be to strengthen cooperation with regional channels, enlarge regional industry agents, step up vertical brand promotion and build upon regional dealers' and SI/ISVs' resource advantages to expand their products' market shares.

The market pattern will change. In 2007, network equipment firms Huawei and ZTE entered the server field, causing a major impact on such main server suppliers as HP, SUN, IBM and DELL in the telecom industry. If ZTE and Huawei enter the enterprise-level market, competition in the server market will intensify. The whole market pattern will change and a new round of reshuffling will be imminent.

The blade server market will become a new area of competition. As technology matures, blade servers will become a product more suitable for deployment at data centers. And, the procurement demand will continue to expand. The blade server market is expected to enter a fast lane in the future. It is bound to become a focus of competition.

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: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with 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: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

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 Co., Ltd.

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