China Starts Replacing IBM Servers With Local Brand over Cyber Threats

ibm servers
ibm servers

China has started replacing the imported servers with locally made systems, as tensions over the situation of cybersecurity between the U.S. and Asian country increased.

“China Construction Bank Corp.’s Xinjiang branch has successfully trialed the Inspur Group Ltd.’s Tiansuo K1 server system and thus, it has replaced its previous IBM servers.”, People’s Daily Newspaper, controlled by China’s Communist Party reported on Friday.

The other industries including the power, agriculture, and Oil will start to use Inspur’s Tiansuo K1 system, as mentioned in the report.

The government of China is reviewing whether the domestic banks reliance on high-end server from IBM compromises the nation’s financial security.

IBI Times also reported that the Chinese government has asked banking officials in the country to replace the IBM servers with those that are being made locally.

“We haven’t heard about the order,” an official at one of the banks’ IT departments said, according to Reuters, adding: “There aren’t any locally made hardware around that can handle the massive amount of data in the banking industry.”

According to a study by Forrester Research Inc., cited by Bloomberg, China will purchase 11 percent more products related to information and technology in 2014, taking the total purchase amount up to $125 billion, creating risks for other U.S.-based companies like Microsoft.

IBM didn’t comment on this report yet.

HP – Hewlett-Packard and the Oracle held 99 percent of China’s server market before the Tiansou K1 system.