A new IT behemoth has bellied its way up onto the beach. IDC has issued a press release:
One year after the announcement of the subsidiary of Tsinghua Holdings, Unisplendour Corporation Limited’s plans to acquire 51% share of H3C Technologies and Hewlett Packard Enterprise’s China-based server, storage and technology services business, the company finally completed the acquisition at approximately US$ 2.3 billion, forming the New H3C Group. The New H3C Group will be the exclusive provider of Hewlett Packard Enterprise’s server, storage, and networking, as well as hardware support services in China.
The Chinese market is different to existing IT markets because local companies are supported by government efforts, call it protectionism if you like. The type of closed market created by government support tend to fail in the long run as is shown by almost any African country but they sure can hurt competition until the impact flows through.
Its not clear to me whether H3C will do business outside of China if itt has partnered with HPEE. Huawei & ZTE are making large sales globally.
Also, whats the impact on Aruba/HPE Networking ? I’ll have to ask some questions.