US technology giant EMC Corp plans to open 20 offices in China within five
years and expects its software sales in the country to double each year during
the five-year period, its president said.
That will be part of EMC's
accelerated expansion drive in China after it announced in June 2006 it would
invest $500 million in the country by 2010.
Denis Yip, president of EMC
Greater China, said the firm would open four offices in Shenyang, Xi'an, Nanjing
and Wuhan this year and planned to increase the number to 20 within five
years.
EMC is the world's largest data storage company, competing with
IBM and Hewlett-Packard.
The firm, which previously focused on storage
gear sales, has transformed itself into an information management company by
shifting to software sales in recent years.
In 2006 it generated
worldwide revenue of $11.2 billion, with software and service revenue accounting
for 54 percent.
But, "the proportion in China is much smaller", said Yip,
adding that Chinese firms' IT spending has mainly gone toward hardware rather
than software.
"Previously they shied away from buying software products
and services. But now they are starting to put a premium (on such products and
services)," said Yip.
The president said he hoped software sales would
account for one-third of EMC's total revenue in China by 2011.
Surging
demand for software products and services in China, especially from banks, could
boost EMC's licensing sales.
EMC has beefed up its localization of both
manufacturing and research and development (R&D) activities in China to cash
in on a boom for storage software, hardware and services.
Last year the
firm launched an R&D center in Shanghai as part of its $500 million
investment.
The center now employs 135 people and Yip expects the
headcount to reach 500 by the end of next year.
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