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China’s 2007 Linux Revenues to Reach
200 Million Yuan January 23, 2008 CCID Consulting expects China’s Linux operating system revenues will reach nearly 200 million Yuan, up over 20% in 2006. Trends to watch out for include: More industry-specific and customized applications. Linux has the advantages of openness, scalability and low relative cost, making the operating system a good candidate for industry-specific applications. Chinese industry examples include hotel, lottery and in particular, mobile handset specific application. Also, from a geographical and socio-economic perspective, consider a “rural” based Linux edition. Growth into China’s less developed regions and into SMEs. Linux growth will slow in China’s more developed and urban North, East and South regions. Expect to see more growth in the Northeast, Northwest and Southwest regions, especially given their relatively low IT adoption. Linux will also grow more into China’s tier 2 and 3 cities. Given cost advantages of Linux, expect to see more adoption by SMEs, especially in fast growing industries with large numbers of them, such as manufacturing, logistics, and education. 2007 in Review Notable developments in 2007 include: Top vendors consolidated their China market share. Branding became more important to customers, as they required strong technology, implementation, and support from vendors. Top vendors Red Flag Software, China Standard Software, Novell, Turbolinux and Red Hat accounted for over 90% of market share in China. No large centralized government Linux procurement; shift towards regional and smaller cities. Large scale centralized government Linux procurement initially spurred China’s Linux market (along with large enterprise orders). In 2007, there were no such large scale centralized procurements. Rather, demand shifted towards the regional level, and tier 2 and 3 cities. Vendors responded quickly, with a focus on building regional sales and support channels. Linux vendors also quickly adjusted their past sales structure and order strategies. This included building of regional channel partners, ISVs, and SIs. For more information Please contact us for these and other China-related data, information and products. Unless otherwise specified, all information provided is sourced from CCID Consulting. |
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