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Datavast Inc.: the Target Segment Decision

In: Business and Management

Submitted By cpratt20
Words 1436
Pages 6
1. Describe the data storage industry in China in this case. Include comments on technology and issues in accepting new technology?

“Data storage devices allow users to store digital files in a secondary location in order to prevent the loss of important information. Such devices came in many forms, depending on the needs of the users” (Hao, 2012). Prior to the introduction of the data storage industry in China, approximately 20 percent of small to medium companies were still using CDs as their form of data backup, or other outdated methods, such as external hard drives. Some Chinese companies did not use any form of data back up at all. Even the larger companies’ back up systems that they were paying millions for were outdated. They used integrated back up systems to store their core data, while their non-core data was stored through outdated means.
However the Chinese weren’t as receptive to Cloud storage initially, as they feared their data would be leaked, or that the cloud- storage providers would go bankrupt and disappear with all of their data. In China it was common for Client’s information to be sold by individuals working for service industries, and as a result companies did not “trust service providers with storing sensitive information” (Hao, 2012).

2. Compare the buying practices of small companies versus large companies with respect to backup technology.

In respect to backup technology, there were clear differences between the buying practices of smaller organizations versus larger ones. Larger organizations worked with Systems Integrators to purchase IT solutions, while smaller organizations purchased directly from IT suppliers. Larger businesses were “not receptive to new product pitches or opportunities from parties with whom they lacked a connection” (Hao, 2012). These larger organizations were loyal to their System...

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