Government Server Procurement Trends in China

With the advancement of e-government servicesFrom a national security perspective, it is necessary
and applications in China, demand for server productsfor government departments to move to a domestic
from government departments is on the increase.server-dominant, foreign server-supplement position
Most government network project tenders todayin the long term, in order to change from the
would involve procurement of server products.currently embarrassing situation of reliance on foreign
Server applications in public service are mainly forserver products.
departmental portals and intranets, used for functionsTrend Four: Meeting e-government demands
such as Web, FTP, mail, video, database, OA,When choosing e-government software platform
business applications, resources sharing, data centretechnologies, domestic and multinational providers
and disaster recovery.have very different understanding of the situation.
Trend One: Energy efficiencyMultinational products are mostly
China is now a big computer user country, so energyinfrastructure-framework types, which have few
efficient computers will be an important factor forspecific applications for e-government functions, while
building an environmentally friendly country. In termsdomestic providers and system integrators can
of server design and applications, energy efficiencynormally provide e-government specific softwares.
would be an additional performance criterion besidesTherefore it is expected that there will be more and
reliability, manageability, expandability and usability.more hardware-software integrated server products
In this context, blade server products, developedwhich are tailored to specific e-government functions
with the latest multi-processor and low powerin China in the next few years.
consumption technologies, will become a mainstreamTrend Five: Diaster back-up
product that competes with the rack servers in aDue to the escalating data volume and new service
few years' time. In addition, server virtualisationprovision, governments in China are now facing the
technology has now become a means to improveinevitable issue of ensuring data integrity, safety and
hardware utilisation and management efficiency.reliability, as well as how to achieve data central
In server procurements, government departmentsmanagement and a powerful, high-performing and
should choose highly energy-efficient CPUs, in orderreliable information storage platform. Many
to reduce power wastage from cooling systems andgovernment departments in China have now
improve overall computer energy efficiency. Othercompleted the planning of disaster recovery systems
hardware configurations, such as memory, I/O andand are onto the implementation phase.
hard drives, should also take into account green and"Price Inquiry" and "Competitive Negotiation"
energy saving factors.Government procurement of IT products in China
Trend Two: Low cost maintenanceusually takes the model of "Price Inquiry" or
If internal technical staff can deal with most daily"Competitive Negotiation". Price Inquiry involves
maintenance of servers, a significant portion ofmaking price inquiries to the public via internet or
server procurement costs can then be reduced in theother media platforms. In this process, the procuring
public service sector of China.party will send price inquiries to at least three
There are differences in aftermarket servicessuppliers, and choose the final winner based on
between foreign and domestic server providers.project requirements, quality service contents and bid
Multinational brands such as IBM, HP and Dell canprice.
provide differentiated aftermarket services based onOn the other hand, "Competitive Negotiation" allows
different user demands. Their service fees also varyprocurement personnel to directly talk to at least
among maintenance frequency and solutionthree suppliers on issues such as price, design,
promptness.technical specifications and service requirements, and
On the other hand, domestic computer companies,make selection decisions based on pre-set standards.
such as Lenovo, Inspur and Founder, all provideCompetitive Negotiation can only be used in one of
three-year service warranty for hard drive products,the four following situations: Lack of suitable bids for
whether it's entry-level products or complex servertenders; Complex technical issues and uncertain
products. Most domestic providers also have theproject specifications; Urgent demands; Inability to
advantage of comprehensive service networks incalculate project costs in advance.
many provinces of China.In terms of premium-grade servers such as
Trend Three: Domestic brands getting recognitionmicrocomputers, the multinational dominance in China
With domestic software and system platformsby IBM, HP and Sun Microsystems are now being
maturing, there is also a trend for Chinesechallenged by Chinese domestic server providers.
e-government services to adopt domesticBecause of the increasingly competitive server
information platforms.landscape, multinational server providers have cut
In recent years, Chinese domestic software systemsdown their product pricing in recent years. But for
have made significant achievements in core softwaremost procurement tasks involving high-end servers,
technologies, such as operating systems, middleware,many government departments in China still favour
office software, information security, large-scalemultinational brands.
application software and embedded systems.Provincial governments are now issuing annual
Domestic servers provided by Dawning, Inspur,procurement pricing limits on server brands, models
Lenovo, PowerLeader, Asus, Tsinghua Tongfang, etc.and accessories. This could make the pricing of some
are now playing an increasingly important role inentry-level PC servers even more transparent.
e-government services in China.