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IBM launches research centre for SMEs
By Xiao Dan (China Daily)
Updated: 2004-10-22 09:09

Information technology (IT) giant IBM is ready to grab more shares in the IT related market of China's small and medium-sized enterprises (SMEs) with more products at affordable prices.

David A. Carlquist, IBM vice-president of Global Emerging and Competitive Markets announced the campaign by unveiling its first world research centre for SMEs in Beijing yesterday.

The research centre will develop technologies and solutions aimed at SMEs, one of the fastest growing sectors in IT spending, to serve the Chinese market and leverage the new products around the world through its global research network.

SMEs make up more than 99 per cent of the total number of Chinese companies. The application of IT in their operation will create a huge market.

"The IT spending of China's SMEs will probably reach US$6.7 billion," predicted David Cheng, vice-president of IBM's greater China group.

The revenues from SMEs account for almost one-third of IBM China's total amount, according to Cheng. And the company is seeing this figure grow.

IBM will work together with local partners, such as Chinese independent software vendors (ISVs) to make products and technology more suited to local markets.

The company yesterday also launched new products, including solutions for retail stock replenishment and order & payment, which are co-produced with Efuture, a software development company specializing in providing retail solutions.

The solutions will help retailers increase their management efficiency and reduce human resource costs and operation costs. Guo Geping, president of China Chain Business Association hopes the solutions will help raise domestic retailers' profitability.

IBM's advantages in the SME market also lie in providing comprehensive solutions instead of selling cheaper hardware, said Cheng.

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