Transcript Identity Management

R&D Development in China
Golfen Guo ([email protected])
ATV, CTO Office, EMC
Mar. 9, 2009
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Agenda
 Digital Universe
 EMC & EMC China COE
 Why China?
 China R&D Development Research Result
 Global Economic Recession
 Discussion
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Digital Information Around Us
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How To Measure Digital Data
 A byte (pronounced IPA: /baɪt/) is a basic unit of measurement
of information storage in computer science.
– by wikipedia
 There is no standard but a byte most often consists of eight bits.
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How To Measure Digital Data (cont.)
 KB – Kilobyte
 1000 byte
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How To Measure Digital Data (cont.)
 MB – Megabyte
 1000,000 byte
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How To Measure Digital Data (Cont.)
 GB – Gigabyte
 1000,000,000 byte
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How To Measure Digital Data (Cont.)
 TB – Terabyte
 1000,000,000,000 byte
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How To Measure Digital Data (Cont.)
 PB – Petabyte
 1000,000,000,000,000 byte
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How To Measure Digital Data (Cont.)
 EB – Exabyte
 1000,000,000,000,000,000 byte
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Digital Universe
 The digital universe in 2006 was 180 exabytes
 The digital universe in 2007 was 281 exabytes or 281 billion gigabytes.
The number is 10% bigger than previous estimation.
 In 2011, the amount of digital information produced in the year should
equal nearly 1,800 exabytes, or 10 times that produced in 2006.
 The compound annual growth rate between now and 2011 is expected to
be almost 60%.
Source: IDC 2008
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What EMC Is
 The world leader in storage systems, software, services, and solutions
 Focused on building and managing secure and flexible information
infrastructures
 Mission: To help organizations of all sizes get the most value possible
from their information
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EMC has Evolved as the Market has Evolved
Storage
Company
Storage and
Information
Management
Information
Infrastructure
1991–2002
2003–2005
2005+
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Software and Services Are Now 54% of Revenues
EMC’s Evolution
Software
16%
Services
10%
Systems
46%
Software
37%
$3.575B
$4.487B
Systems
74%
Revenue Mix 2000
Services
17%
$1.569B
Revenue Mix 2005
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EMC Strategic Software Acquisitions
Legato
VMware
Smarts
Captiva
Internosis
Protection/
Recovery
Intelligent
Data
Movement
Server
Virtualization
Real-time
Network
Systems
Management
Information
Capture,
Digitization,
Categorization
IT Services for
Microsoft
Environments
Documentum
Dantz
Rainfinity Acxiom RSA
Unstructured Data
Content Management
Backup/Recovery
for SMB
Extends
Virtualization
to NAS
Environments
EMC’s Acquisition Approach:
• To strengthen and extend its core
• To extend marketplace into brand-new areas
Acxiom’s
Information
Grid Software
Expert in
online
security
Invested
>$7 billion
2003–present
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EMC’s Strategy
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EMC’s Long-term Results
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External Storage Market Share
Worldwide External Storage
2008 Revenue Market Share
 EMC ranked #1 with a 23.3% share
Other
19%
EMC
23%
 EMC/Dell* revenue accounted more of
the external storage market in 2006
Sun
5%
NetApp
7%
HP
13%
Hitachi
8%
Dell
9%
IBM
16%
* Includes EMC revenue and revenue generated through the sale of CLARiiON systems by Dell, which IDC attributes to Dell
market share
Source: IDC, March 2009
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Storage Software Market Share
Worldwide Storage Software
2008 Revenue Market Share
 EMC ranked #1 with a 26% share
Symantec
18%
EMC
26%
HP
4%
Other
28%
IBM
13%
CA
4%
NetApp
7%
Source: IDC, March 2009
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EMC’s Best-of-Breed Partnership Ecosystem
HP
IBM
Sun
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China R&D Journey Start…
 Jun 23, 2006 EMC unveiled plan to open a software R&D center in
Shanghai.
 Plan to invest $500 million in China over the next five years,
underscoring EMC’s deepened commitment to the rapidly growing China
marketplace.
 Nov 2, 2006 China R&D center opening
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Evolved into an EMC Center of Excellent
 EMC COEs are units that work on core EMC technologies, collaborating
and leveraging global talent for engineering excellence.
 Jan 2007, China R&D center evolved into an EMC Center of Excellent.
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Second R&D Center in China
 Nov 1, 2007 EMC officially opened its new R&D center in Beijing.
 Open the first EMC Research Lab outside of the United States.
 Committed to double its planned investments to US$ 1 billion in China
over the next five years.
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Made in China -- StorageCredenza
 Apr 3, 2008 EMC unveiled StorageCredenza in China.
 EMC StorageCredenza: The first EMC-branded product released in a
country first with the country not being U.S.
 It is also the first EMC China R&D Center owned product.
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China Advanced Technical Support Center Opening
 Aug 8, 2008 EMC Advanced Technical Support Center Opened in China
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Rapid Growth
 2006 – < 100
 2007 – 250+
 2008 – 500+
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China COE Conclusion
 To establish a world-class software development center that will foster
innovation for EMC's global offering
 Activities scope:
–
–
–
–
–
–
Advanced, new feature and sustaining software development
Technical research
Hardware development
QA
Localization
Technical support
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Not Only EMC…
 From 1993 to 2002, MNC oversea R&D spending rose from $30 billion to
67 billon
 During 2004-2005, over half of leading MNCs have set up R&D
organizations in China or India
 By different accounts, MNC R&D Centers in China:
– 2001 <= 200; 2005 = 750; 2007 > 980
 Some leading companies have begun to consolidate its R&D
organizations in China and established its China R&D system, such as
IBM, Microsoft and etc
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Why did They Chose China?
•Surge of MNC R&D labs in China since the late 1990s
“Within five years, China could overtake UK, Germany and Japan as a
base for corporate research, leaving it second only to the US.”
(NYTimes, 2004; von Zedtwitz)
•Top locations for offshore R&D:
• China, US, India, UK (The Economist Intelligence Unit, 2004)
• China, US, India, Japan, UK (UNCTAD, 2004)
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Factors Attracting FDI
Huge market
Rich and excellent
manpower
Stable increase of
Chinese economy
Favorable foreign
investment policy
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Convenient infrastructure
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Factors Attracting Foreign Investment
 Huge Market
 Rapid Economy Growth
 Favorable foreign investment policy
 China Talent Pool
 Convenient Infrastructure
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Factors Attracting Foreign Investment
 Huge Market
 Rapid Economy Growth
 Favorable foreign investment policy
 China Talent Pool
 Convenient Infrastructure
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Dreaming with BRICs: The Path to 2050
 Over the next 50 years, Brazil, Russia, India and China—the BRICs
economies—could become a much larger force in the world economy.
 The results are startling. If things go right, in less than 40 years, the
BRICs economies together could be larger than the G6 in US dollar
terms.
Source: Goldman Sachs
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BRICs’ GDP Growth
Real GDP growth (Annual %Change) in 2007 by country
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China’s GDP Growth
 GDP growth statistics
 9% in 2008
 2008 Quarters
• 10.6% (Q1)
• 10.1% (Q2)
• 9.0% (Q3)
• 6.8% (Q4)
China's GDP growth (2000-2009)
 2009 target: 8%
15%
12%
9%
6%
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
3%
0%
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Factors Attracting Foreign Investment
 Huge Market
 Rapid Economy Growth
 Favorable foreign investment policy
 China Talent Pool
 Convenient Infrastructure
Deng Xiaoping 1904-1997
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The Development History of MNC in China
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Factors Attracting Foreign Investment
 Huge Market
 Rapid Economy Growth
 Favorable foreign investment policy
 China Talent Pool
 Convenient Infrastructure
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Overview of The Chinese Talent Pool
 Population: 1.3 billion
 19 million students in 1,500+ universities and colleges
 5 million fresh graduates in 2009*
* Data Source: National Bureau of Statistics of China 2007
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Factors Attracting Foreign Investment
 Huge Market
 Rapid Economy Growth
 Favorable foreign investment policy
 China Talent Pool
 Convenient Infrastructure
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China Transport Infrastructure
 By the end of 2007
– China's total length of expressways has reached 53,600 kilometers
– the national passenger throughput of all airports across China
totalled 387.59 million person-trips
– the national cargo throughput of all ports above designated size
reached 5.28 billion tons
* Data Source: Research and Market 2008
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China R&D Center Development Research Result
 Industrial Distribution
 Investor County Distribution
 Location Choice
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Industrial Distribution
The industrial distribution of autonomous R&D settled by BusinessWeek
1000 MNCs in China
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Investor County Distribution
The country distribution of autonomous R&D settled by BusinessWeek
1000 MNCs in China
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Location Choice
The regional distribution of autonomous R&D settled by BusinessWeek
1000 MNCs in China
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Barriers for MNC R&D in China
 Barriers from policy environment
–
–
–
–
Strong and bureaucratic government
Import limitation
Imperfect IPR protect system
Difficulty for traveling to Taiwan
 Barriers from local market
– Increasing operation cost
– Imperfect infrastructure
 Barriers with Human Resource Management
– Lack of innovative and experienced labors
– High employee mobility
– Difficulty in managing the diversified staff
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Global Economic Recession
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China Under Global Economic Slowdown
 Export/import decline
 Factories close
 Unemployment increase
 Registered unemployed labor in cities
 Raised 2009 target to 4.6%, the highest since 1980
 Foreign direct investment decline
 FDI flows weakened, with a 5.7% decline in Dec.
2008
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Employment Crisis in China
 According to a survey by FESCO, a Beijing-based recruitment services
provider for multinational companies, by polling 356 of its clients spread
across the country and engaged a wide range of industries for the survey.
– nearly 70 percent of the firms it polled have said they would trim their
recruitment requirements for 2009
– 27 percent said they had already started laying off employees.
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China’s Stimulus Package
• 4 trillion RMB ($586 billion USD) stimulus
package for government investment in
infrastructure, tax deductions and subsidies, to
stimulate domestic spending
• Announced Nov. 9, 2008, projects and spending
already started in 2008
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Prediction
 China – First to Recover?
 Premier Wen Jiabao said he saw some signs of
recovery in Dec. 2008
 China aims to be the first to recover
 Start to recover in the 2nd half of 2009, and gain full
steam in 2011
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Discussion
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^innovation
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