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Large Foreign IT Vendors Face Serious Challenges

Well-known Chinese news site Sina recently reported that the new term “Removing IOE” is becoming a hot topic. “IOE” stands for IBM, Oracle and EMC. All are major IT vendors headquartered in the United States. Ever since the Snowden incident, U.S. high-tech companies have been suffering sharp declines in sales. The meaning of IOE quickly expanded to include more U.S. companies such as Microsoft and Cisco. According to reports released by the research institute Gartner, the IBM computer server market share in the Asia-Pacific region declined from last year’s 37 percent to 28 percent this first quarter. Its first quarter sales in China fell 20 percent compared to the first quarter last year. Cisco’s Chinese sales also suffered double-digit declines. Within the last month, the Chinese government also announced a policy to ban IBM products in Chinese banks and ban Microsoft Windows 8 from government procurement. The Chinese government intends to replace U.S. high-tech products with domestic alternatives. 
Source: Sina, May 30, 2014