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China Electronics News: China is Expected to Have a Say in Technology of Next Generation Data Center

In the second half of 2011, one Internet tycoon that ranks the top three in China asked IBM for the requirement of bulk purchase of server on the premise of customization, but got a negative reply after IBM made a feedback to the head office. Therefore, the client found us Inspur and we took the order. IBM did not accept the order maybe due to too many procedures and links of customization involved and high cost, or because IBM did not realize how fast the explosive power and scale of the market would increase then.

In fact, nowadays Internet user has already become the largest user of server market and Internet has been the marekt of strategic importance for server manufacturers. At the same time, Internet user has become the most important pusher to define the future data center. Chinese IT manufacturers make some innovation centered on demand of Internet user, and they are likely to have a say in technology of next generation data center.

Deep Optimaization and Operating Capability of IT Manufacturer are Tested in Internet Market

There is a need of deep research and development with high cost and many links to supply data center product integrating architecture for Internet provider, which tests deep optimation and operating capability of IT manufacturer.

According to data of IDC, sales volume of server market in China of 2013 was 1,475 thousand, among which there are 473 thousand of Internet industry, accounting for 27.1% and it has become the largest market. Internet almost covers all the increment of sales volume and sales turnover. While the demand for data center server has increased on a large scale, these Internet provider also proposes new requirement.

Taking BATQ (Baidu, Tencent, Alibaba, Qihoo) as representatives, on the one hand, they expect data center equipment to be more concise and more integrative in the light of convenient operation and rapid deployment; on the other hand, as each operation such as search, e-commerce, social contact, etc. needs to be supported by a huge number of servers, they expect server product can be designed specific to differentce applications. Therefore, the Internet manufacturer among BATQ asked IBM for customized server in the second half of 2011.

It seems to many people that it needs a large quantity of customization and optimization to supply integrated and architecture-blended data center product for Internet provider. It requires to allocate resources again from research, test and production line in order to conduct deep research and development, which involves high cost and many links, and can not earn much money.

Wang Hongli, vice-presidnet of Inspur Group, said to the journalist of China Electronics News that, such demands of Internet users have created two opportunities that it tests resource capability, industrial capability and local service capability to promote IT suppliers on one hand and on the other hand, there is a long-term development space for interaction with Internet users.

As for the first dimensionality mentioned by Wang Hongli, the jounalist interviewed production line, research, testing and other links of Inspur server on April 17. It can be felt that there are clearly differences between Inspur server and that of many other manufacturers in research and business chain agility. Inspur holds a control from key components, mainboard, system to production line, therefore it can earning money by conducting profound customization and run various business chain efficiently. The Inspur Rack Scale Server SR Series Server with converged architecture provided for Internet user by Inspur has ever realized turnover of 3,000 server nodes per day in Inner Mongolia data center of Baidu, which has broken a new record for deployment speed of server in the industry. For many server manufacturers, many links are gained by OEM and ODM, which is not easy for them to make profound customization and high-speed running in the market.

"So many compititors give up in Internet market, awaring it can not make money, but when they would like to enter the industry again, there is no chance." Wnag Hongli said, "Inspur has broken the vicious circle of low price compitition and gained considerable benefits." According to her, the server provided for Internet users by Inspur has exceeded 100 thousand nodes and Inspur Rack Scale Server SR Series Server supplied by Inspur in recent two years has been more than 20 thousand nodes. Inspur Rack Scale Server SR Series has currenty occupied more than 50% of market share among similar products.

Next Generation Data Center Defined by Interaction with User

Development of product always results from interaction with user. In the future, Chinese IT enterprise has an opportunity to interact with user demand to turly define next generation IT technology and product.

As for the second dimensionality mentioned by Wang Hongli, Inspur is actually creating more opportunity by joining hands with Internet user. In April 2014, an Internet user came to Wang Hongli to ask them to make some Internet application productization and integrated into solutions of Inspur for joint sales. Recently a user of BATQ also expect Inspur to join hands with enterprise user market to expand their B2C capability to B2B market.

In fact, such interaction can not only provide vast space in business cooperation for domestic IT manufacturer and Internet user, but also bring huge development space in definition and technological development of next generation data center.

Wang Jian, CTO of Alibaba Group told the jornalist of China Electronics News, "development of product always results from interaction with user." Many key technology of IT in China can not make a difference due to lack of opportunity of interaction with user.

In the past, it is hard for demands of Chinese users to affect definition of technology and product in the global IT market. Wang Endong, CEO of Inspur Group, said to the jornalist of China Electronics News, most of IT technology and product we have seen is developed and defined according to demands of European and American users. Therefore, it is difficult for western enterprises to make cooresponding custimization and modification according to demands of Chinese users and most domestic IT technology can only follow suit. However, in the future, Chinese IT enterprises can have opportunity to interact with demands of Chinese users to truly define and create next generation IT technology and product.

Nowadays, demands of Chinese users have become the most representative demand in the world. Chinese users in telecom, finance, electric power, Internet have ranked the first in the world. By 2016, market scale of Chinese data center shall break 100 billion RMB, occupying one third of market share of global data center and China will become the largest data center market in the world. Demand of Chinese user shall be recognized as the critical element to define technology of next generation server.

Wang Hongli said frankly, from a global perspective, ISP (Internet Service Provider) is acutally the forerunner of information technology application. Many revolutionary technology rised from Internet and then spread to general industry users, for instance, rack-mounted server, distributed file syste and so on. As a result, the rapidly growing Internet market and Internet giant of China are scarce resources. Profound cooperation with Internet user can accelerate integrated innovation of Inspur in data center market, which can lay influence not only on Internet market, but more vaster IT market in the future. Therefore, to Wang Hongli who is currently mainly responsibale for Internet market in Inspur Group, it makes her excited facing Internet market.

Related Links

Server machine cabinet with converged architecture emerged from OCP project (Open Compute Project, the open-sourcing hardware plan launched by Facebook in 2011, which includes two parts of data center and server and is aimed at setting out technological standard for energy-efficiency of Internet industry and computer development, as well as promoting technology sharing among members), and has been applied in a large scale in data centers of operators such as Facebook, Google, Amazon and so on, becoming the main category that Internet operators will procure in the future. Scorpio Project Team was founded in 2012, which marked the beginning of localization reform of server machine cabinet. Establishement of scorpio standard for server machine cabinet has provided a standard for server machine cabinet to land in China. Scorpio standard for server machine cabinet has currently been upgraded into version 2.0. Server machine cabinet of Inspur Rack Scale Server SR Series manufactured by Inspur has developed to the fourth generation from 2010 to 2014, which is in accordance with "Scorpio" standard. (China Electronics News, Website of Electronic Information Industry Author: Li Jiashi Release time: April 22, 2014)

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