Headline April 26, 2015/ ''' IBM ROLLS OF THE TOP IN CHINA '''



IBM has many business projects in China. 

The company has agreed to license the advanced chip technology that works as the brain of the servers- To a separate Chinese Chinese company,  Suzhou PowerCore.

And IBM says it has spoken to clients about letting them build local encryption over its  z13  mainframe computer, which could help in China, where a proposed antiterror law requires domestic companies:

To provide encryption keys or use local Chinese encryption standards. 

IBM's cooperation with Teamsum and Suzhou PowerCore through Open Power is part of the company's strategic shift away from its traditional hardware, software and services businesses to: New cloud, data and mobile offerings.

IBM, which reported quarterly earnings recently, has been grappling with declining revenue as it makes that transition. 

Both the server and chip technology IBM is licensing in China are widely used by banks in the country.

In the fourth quarter, IBM generated $4.9 billion in revenue, or 20 percent of the total, from Asia; it does not break out China sales.

'' You have Chinese policy interests, U.S. policy interests and and IBM interests   -realistically your hope of aligning these is not all that high,'' said Willy C.Shih, a professor of technology and operations management at Harvard Business school.

''I think it's a tough call for IBM.''

On a trip last month to Beijing, IBM's chief executive, Virginia M. Rometry, said the company's approach in China was different from that of any other foreign technology maker.

Foreign firms need to collaborate with Chinese companies to grow new industries   -nowhere is this truer than in the I.T.sector,'' she said in remarks at a March 24 panel discussion in Beijing.

She said opening IBM's chip technology to Chinese partners ''will create a new and vibrant ecosystem of Chinese companies producing homegrown computer systems for the local and international markets.''

IBM's open power program is getting particular attention in China, according to analysts, because it plays into local demands that foreign tech companies disclose intellectual property, open up encryption standards and submit to invasive security audits of products.

While Beijing has long pushed indigenous innovation policies meant to foster a domestic a industry the disclosure in 2013 of online spying efforts by the United States made by the former-

National Security Agency contractor Edward J. Snowden gave the more hawkish officials in China the evidence they needed to expedite plans to wean sensitive industries, like banking and energy, off foreign technology.

One new Chinese law, which called for disclosure of source code of products sold to banks, was suspended by the government this month. But analysts say Beijing is likely to continue making similar demands in different ways.

Mr Shen has been thinking about pushing American tech companies out of China for a while. In 2009, he warned of global communications surveillance by the US in an essay posted on the website of China's Ministry of Industry and Information Technology.

In a May 2014 interview with state run media, Mr.Shen said tech products coming from the United States presented  ''huge security risks,'' and in a July essay he wrote that America's technological dominance makes it a serious threat to Chinese national security.

He added that  ''the US and the Israel cultivate hackers in primary school to find the finest Internet and cybersecurity talents'' and recommended that China create similar policies.

By handing over some intellectual property for a fee analysts say IBM is calculating it can be a part of the technology with which Chinese companies build higher-end servers and other new products that meet Chinese regulations.

That would help IBM compete with Intel, which provides chip technology from which companies build their own servers.    

The Honour and Serving of the  ''operational technological research'' continues. Thank you for reading, and maybe, learning. And see Ya all on the following one.

With respectful dedication to the Students, Professors and Teachers of China. See Ya all on !WOW!   -the World Students Society Computers-Internet- Wireless:

''' A Vibrant Ecosystem '''

'''Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless


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