BIZCHINA / Overseas Investment
EMC to ramp up presence
By Li Weitao (China Daily)
Updated: 2007-03-16 09:37
US technology giant EMC Corp plans to open 20 offices in China within
five years and expects its software sales in the country to double each
year during the five-year period, its president said.
That will be part of EMC's accelerated expansion drive in China after it
announced in June 2006 it would invest $500 million in the country by
2010.
Denis Yip, president of EMC Greater China, said the firm would open four
offices in Shenyang, Xi'an, Nanjing and Wuhan this year and planned to
increase the number to 20 within five years.
EMC is the world's largest data storage company, competing with IBM and
Hewlett-Packard.
The firm, which previously focused on storage gear sales, has transformed
itself into an information management company by shifting to software
sales in recent years.
In 2006 it generated worldwide revenue of $11.2 billion, with software
and service revenue accounting for 54 percent.
But, "the proportion in China is much smaller", said Yip, adding that
Chinese firms' IT spending has mainly gone toward hardware rather than
software.
"Previously they shied away from buying software products and services.
But now they are starting to put a premium (on such products and
services)," said Yip.
The president said he hoped software sales would account for one-third of
EMC's total revenue in China by 2011.
Surging demand for software products and services in China, especially
from banks, could boost EMC's licensing sales.
EMC has beefed up its localization of both manufacturing and research and
development (R&D) activities in China to cash in on a boom for storage
software, hardware and services.
Last year the firm launched an R&D center in Shanghai as part of its $500
million investment.
The center now employs 135 people and Yip expects the headcount to reach
500 by the end of next year.
(For more biz stories, please visit Industry Updates)
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