ESG Analysis: What is the survival of Chinese storage vendors

ESG has been in the Chinese market for half a year, in the past six months, I have visited more than 10 local it manufacturers, most of which are storage vendors. I am very shocked by the technical research and development capability of Chinese storage vendors, the reaction speed to the market, the technical level of products and the high price-performance ratio, as well as the supporting service levels. It all made me feel that China's storage market is going through a change.

A lot of people have the same suspicion that I did before. How can Chinese storage vendors be ranked among mainstream storage vendors in market foresight, research and development capabilities, business size and capital control?

Let's review the development of some innovative mainstream storage technologies: Data deduplication, thin configuration, and cluster storage, which were initially developed by small vendors. and large manufacturers usually through OEM, acquisition and other means, the new technology to enrich its "main Line" product features or improve the product line, but also reduce research and development costs. These small, innovative firms are creating a new technology to fill the "shortfall" by capturing the gaps in some of the market's technological trends or the "shortage" of large manufacturers ' products. So what are the "shortages" of China's storage markets and where are the living space of local storage vendors? I would like to talk about my views on Chinese local storage companies through a visit to the more than 10 local Chinese manufacturers.

The living space of Chinese manufacturers

1) Market Space

According to the relevant institutions, in the current Chinese storage market, 60% of enterprises do not have data protection mechanism, in the SME users is up to 70%. This is undoubtedly a huge market space for Chinese storage manufacturers. In addition, in the current situation of the global economic crisis, companies are tightening the budget, but the company's data growth has not slowed, the data on the importance of the business does not fall. At the same time, the budget tightening, in the procurement selection of the price economy, the rapid return on investment and other factors are more important, these factors on the market response quickly, more competitive cost of Chinese domestic manufacturers, precisely means that more space for market demand.

2) Technical Space

At present, most of the products and solutions of foreign manufacturers are developed to meet the needs of developed country users ' data centers, while the history of data centers in developed countries is much more complicated than that of Chinese users. These products often exist in China market, but the actual demand performance is insufficient, the management is difficult and so on, and the redundancy function, complex operation and so on also caused the user to the manufacturer's paid dependence. And this is to the Chinese storage manufacturers in the product level to create a living space. They can more accurately according to the real needs of Chinese users, to a shorter development cycle to meet the needs of Chinese users, such as the System management interface is simple and easy to use, more suitable for Chinese users to operate.

3) Cost Space

Foreign manufacturers of product development and production costs are quite considerable. In addition, because its origin is basically overseas, service support and logistics cost are also very high, so that the user's total cost of data protection is also high. and Chinese storage manufacturers to market response quickly, according to user demand for customization, hardware costs and service costs far less than foreign manufacturers.

4 purchasing space of industry concentration

At present, there are many projects in the country using government or industry centralized procurement mode. Through product design to achieve the industry's technical and performance personalization requirements, its function, performance and cost often more than through integration to meet the industry's personalized requirements more advantages. and Chinese manufacturers to understand the characteristics of the industry application, coupled with its rapid market response, often can rob market opportunities. and the current research and development of foreign manufacturers is not based on the Chinese market demand. This makes Chinese storage vendors to meet the industry's personalized requirements, more advantages.