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Inspur Wins China Telecom Server Tender

Sina Tech, 10/15/14

Chinese electronics conglomerate Inspur Group announced yesterday that the company has won an RMB 8-digit server contract from China Telecom (NYSE: CHA; 0728.HK). Inspur's bid covers several models of high-end X86 servers to be used in data centers along China's eastern coast and in western China.

Inspur has previously won server tenders from both China Mobile (NYSE: CHL; 0941.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH), and boasts a 30% market share among China's three major telecom operators.

Xu Zhen, General Manager of Inspur's server products department, has stated that Inspur's server market share among high-end domestic industries such as finance, telecom and utilities has grown rapidly in the first half of 2014.

Editor's Note: Inspur has reported swift sales growth in its server unit following rumors that the Chinese government would ban critical industries in China from using servers produced by foreign firms. For more background on this topic, please see "Inspur Leads China's Q2 2014 X86 Server Market" MD 9/17/14 issue.

Keywords: supply contract Xu Zhen hardware server Inspur 0728.HK CHA procurement China Telecom

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