Local server stocks rise on rumors of IBM bank ban

Although there are no sign of local banks dropping servers provided by IBM, local manufacturers are already taking the initiative to try to lure customers away from IBM.

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Inspur Group Ltd, a Jinan-based server provider, has started an "IBM to Inspur" campaign to weaken Big Blue's market share, according to Bloomberg.

"It is common for every country to choose homegrown technology suppliers over foreign companies if their technology level is even," said Kitty Fok, China managing director for global research firm IDC.

In January, IBM sold its lower-end server unit to Lenovo Group Ltd for $2.3 billion. The deal is currently under review in many countries, including the United States and Canada. The acquisition will be completed later this year, Lenovo said.

In March, a massive strike hit IBM's x86 server factory in southern Guangdong province due to labor disputes.

IBM provides high-end servers such as the System z and Power Architecture-based product lines.

The company's other China business, including some with heavy government involvement, seem to be operating as usual despite uncertainties in the server unit.

IBM is scheduled to ink a deal with local governments on providing air pollution monitoring solutions in several cities, including Beijing, the seat for all major government organizations.

Other US technology companies are also feeling pressure in China as tensions over Sino-US cybersecurity issues escalate.

Microsoft Corp and Cisco Systems Inc expressed concern to China Daily about separate decisions made by the Chinese government over the past week to tighten restrictions.

Most of these moves came after the US accused five Chinese military officials of stealing business information from US companies. China denied the accusations, saying they were "made up".

 

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