r&d development in china
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R&D Development in China. Golfen Guo ([email protected]) ATV, CTO Office, EMC Mar. 9, 2009. Agenda. Digital Universe EMC & EMC China COE Why China? China R&D Development Research Result Global Economic Recession Discussion. Digital Information Around Us. How To Measure Digital Data. - PowerPoint PPT PresentationTRANSCRIPT
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R&D Development in China
Golfen Guo ([email protected])ATV, CTO Office, EMCMar. 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
InformationInfrastructure
2005+
InformationInfrastructure
2005+
Storage andInformation
Management
2003–2005
Storage andInformation
Management
2003–2005
StorageCompany
1991–2002
StorageCompany
1991–2002
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EMC’s Evolution
Revenue Mix 2000
Software and Services Are Now 54% of Revenues
Software16%
Services10%
Systems74%
Revenue Mix 2005
Systems46%
$4.487B
Services17%
$1.569B
Software37%
$3.575B
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EMC’s Acquisition Approach:• To strengthen and extend its core• To extend marketplace into brand-new areas
Real-time NetworkSystems Management
Protection/ RecoveryIntelligent Data Movement
Server Virtualization
Unstructured Data Content Management
Backup/Recoveryfor SMB
Extends Virtualizationto NAS Environments
EMC Strategic Software Acquisitions
Information Capture,Digitization, Categorization
Acxiom’s InformationGrid Software
IT Services for Microsoft Environments
Legato SmartsVMware InternosisCaptiva
AcxiomRainfinityDantzDocumentum
Invested
>$7 billion 2003–present
Expert in online security
RSA
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EMC’s Strategy
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EMC’s Long-term Results
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External Storage Market Share
EMC ranked #1 with a 23.3% share
EMC/Dell* revenue accounted more of the external storage market in 2006
2008 Revenue Market Share
* 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
EMC23%
HP13%
IBM16%
Dell9%
Hitachi8%
NetApp7%
Sun5%
Other19%
Worldwide External Storage
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Storage Software Market Share
EMC ranked #1 with a 26% share
2008 Revenue Market Share
Source: IDC, March 2009
EMC26%
HP4%
IBM13%
NetApp7%
CA4%
Other28%
Symantec18%
Worldwide Storage Software
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EMC’s Best-of-Breed Partnership Ecosystem
Sun
IBMHP
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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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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
Not Only EMC…
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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
Stable increase of Chinese economy
Huge market
Rich and excellent
manpower
Favorable foreign investment policy
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)
2009 target: 8%China's GDP growth (2000-2009)
0%
3%
6%
9%
12%
15%
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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 increaseRegistered unemployed labor in citiesRaised 2009 target to 4.6%, the highest since 1980
Foreign direct investment declineFDI 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. 2008China aims to be the first to recoverStart to recover in the 2nd half of 2009, and gain full
steam in 2011
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Discussion
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^innovation