China's 2Q08 Linux Growth Up 16.2%,
But Slows Relative To Previous Growth Rates
China's 2Q 2008 Linux revenues
reached 43.1 million Yuan, up 16.2% YOY, but this growth rate is a rather
large decline. China's commercial enterprise orders of Linux are few, and
its growth rates have slowed. Large, centralized purchasing activity has
receded. As a result, vendor competition is heating up, and has shifted from
an desktop and server operating systems focus to a value chain of vendors
that complement Linux.
Key strategy: Linux vendors are edging
Especially in China's financial services
and telecom industries, Linux vendors have to seek a breakthrough strategy
that incorporates an almost software and solution stack approach that
includes Linux. CCID Consulting's research shows that China's major Linux
vendors indeed have shifted from single-product, server and desktop approach
to that of alliances with other vendors to extend beyond Linux.
works with Intel and
pursues mobile Linux products. Red Flag's
Asianux in Wuxi, China has entered its operational
stage, employing technical resources to further joint development and
testing with other vendors.
Turbolinux strengthened its cooperation with
MySQL and Intel to
promote extended applications around Linux.
Standard Software enlarges its efforts in Office
software, consolidation, operating systems, and services with Linux.
- Novell develops its authentication and network management
product advantages to drive Linux sales. Novell also cooperated with
provide more interoperability in high performance computing and
- In addition to its JBoss enterprise
middleware products, Red Hat
advances its Global Community for Collaborative Innovation (OSCI) in
China, targeting financial services, governments, telecom, health care and
Demand for Linux will disperse to
China's SMEs and less developed markets.
The large, centralized Linux orders from
government, financial services, and telecom are giving way to smaller, more
fragmented orders from China's SMEs and less developed markets.
SMEs large but fragmented user base is
rapidly developing its IT applications that will drive Linux growth.
However, SMEs are more price-sensitive. Demand will increasingly come from
manufacturing, logistics, education, health care and social services
Growth rates of IT adoption in China's
more developed North, East and South regions will gradually slow, while low
IT adoption regions of China's Northeast, Northwest and Southwest will
accelerate. Growth will also come from China's Tier 2 and 3 cities.
For more information
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.