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Saturday, July 05, 2014
China Starts Replacing IBM Servers With Local Brand

China has started replacing imported servers with China-made systems, as tensions over cyber security between the Asian country and the U.S. continues.

The official People's Daily newspaper -- controlled by China's Communist Party -- on Friday reported that China Construction Bank Corp.'s Xinjiang branch has succesfully trialed the Inspur Group Ltd.'s Tiansuo K1 server system and thus, it has replaced its previous IBM servers.

More industries including power, oil and agriculture will start to use Inspur's Tiansuo K1 system, according to the report.

The Chinese government is reviewing whether domestic banks' reliance on high-end servers from IBM compromises the nation's financial security.

IBM has not commented on the report yet.

Hewlett-Packard and Oracle held 99 percent of China's server market before the Tiansuo K1 system, the People's Daily reported.

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